Financial Due Diligence
Although there are a number of routine aspects to the due diligence process, the value of our work is dependent on effectively addressing the key issues of relevance for the client. We have divided our financial due diligence into two key areas:
Equity-Based Due Diligence
- Performed in connection with merger and acquisition activity for both the vendor and the acquiring party.
- Key aspects covered include:
- Assessment of underlying or normalised earnings of the target
- Review of historical and prospective financials including analysis of working capital and cash flow requirements
- Focus on areas which may impact on the valuation of the target, e.g. quality of net assets or non-core assets
- Review of operational issues of the business and identification of improvement opportunities that can lift financial performance
Debt-Based Due Diligence
- Predominantly pre-lending/refinance reviews for financial institutions but may also include reviews for non-bank lenders, e.g. mezzanine business finance.
- Key aspects covered include:
- Substantiation of historical financials without providing an audit or review opinion
- Review of forecast financials including an assessment of the underlying assumptions
- Review of existing banking covenants (and suggestions for additional ones where applicable)
Our Key Differentiators Include:
- A small, but dedicated and experienced team focussed on working with our clients in partnership
- The right mix of technical and industry expertise
- Timely resolution of issues as they arise