Services
Financial due diligence
Financial due diligence is a core element of any business acquisition process. Our objective in financial due diligence is to deliver to our clients a thorough understanding of the target business in terms of both financial and non-financial information. Firstly, we are concentrated on the factors that affect the value of the business and help to determine its fair price. Secondly, our approach focuses on critical business issues that may affect the transaction terms and that provide valuable input for price negotiations.
Financial due diligence is focused on:
- Overview of the business structure;
- Analysis of key business drivers;
- Identification and assessment of key financial and business risks that may have impact on the transaction;
- Assessment of the quality and controls of financial information (IFRS/statutory/management accounts);
- Analysis of the business’s historical financial performance (revenues, cost of sales, operating expenses, normalized EBITDA, net earnings, etc.);
- Analysis of the business’s financial position (quality of core assets, analysis of net working capital, net debt, etc.);
- Identification and assessment of off-balance sheet liabilities and commitments;
- Analysis of the budgeting system and assessment of current year budgets achievability;
- Assessment of the financial effect of any tax optimization schemes used by the business.
We also propose additional transaction support services that follow financial due diligence:
For further details about this service please consult Anatoliy Lutsiuk.