FINANCIAL DUE DILIGENCE EXERCISE FOR PROSPECTIVE MERGER &
ACQUISITION ETC
Most successful deals go through an extensive and in-depth due diligence procedure. Due
diligence is a standard of care during M&A s on which investors, bankers, and acquirers
rely. Investing partners frequently utilize due diligence as a pre-investment intelligence
technique to obtain unbiased, in-depth reports on the investee’s credentials. Financial due
diligence entails conducting a more thorough examination of the information gathered
and a thorough assessment of a company's financial health, including its assets, liabilities,
revenue streams, and tax records. Promoters looking for investments or negotiating with
investors require a simulated due diligence to prepare for the real process that the investor
starts.
The ability of an organization to maximize value ultimately depends on the effectiveness
of an impartial, trustworthy, and due diligence report.
For companies considering investments, our specialized transaction advising, and due
diligence teams may help with financial, legal, and tax due diligence, as well as business
analysis.
We offer financial due diligence services for both the buyer and vendor of M&A
transactions.
To determine whether revenue is sustainable, the analysis must evaluate how revenue is
generated as well as profitability, cash flows, and margins. It also considers predicted
financial figures, taxes, interest, depreciation, working capital, and debt.
- Historical trend analysis of revenues and expenses.
- Audit and analysis of company books and records.
- Analysis of cash flow statements and working capital.
- Analysis of assets, liabilities, and long-term debt.
- Analysis of Books of Accounts for fraud or mismanagement.
- Comparison of company figures with similar companies.
- Verification of contracts or agreements with suppliers and customers.
- Market analysis to determine industry competitiveness.
- Identification of operational weaknesses.
- Management Investigation and Target Company Product and Service Analysis.