The time pressure for the analysis of a company prior to an acquisition or a merger is high, as are the expectations for the required due diligence. The financial due diligence includes an assessment of past, effective data, and plan figures such as balance sheet, income statement and cash flows, as well as evaluation of the structure of the personnel, order volume, or the customer base. In this process, the net assets, financial position, and results of operations at a target company are analyzed on the basis of external and internal metrics for the company. However, financial due diligence must be clearly differentiated from a review such as an audit of the financial statements or a company valuation since due diligence very specifically generates information relevant for the principal.
Objective of Financial Due Diligence for Company Acquisitions
As part of our services, we calculate, for example, normalized earnings, net debt, and identify significant financial risks and impacts on key metrics. Of course we rapidly prepare a report on current questions, potential deal breakers, and recommendations for purchase price clauses or guarantees.
The following input may be relevant for this:
- Sustainable, adjusted earnings
- Sales and earnings growth
- Net debt, including unreported circumstances
- Cash flow planning
- Change in working capital
- Investment activity
Buy Side Financial Due Diligence
In Buy Side Financial Due Diligence we support you as a buyer in identifying financial opportunities and risks of the pending transaction, but also in a later phase after closing.
Sell Side Financial Due Diligence
In all things, success depends on preparation - also or especially in the case of a company sale, which entails a certain amount of due diligence. Through structured and detailed preparatory work within the framework of a sell side financial due diligence, the sale of a company can be realized in the shortest possible time and at the best possible price. We support you here in the preparation of the sales documents (Financial Factbook) or also in a Vendor Financial Due Diligence and provide you as management with the necessary overview in this respect.