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      Due diligence creates transparency about a company's opportunities, risks and value drivers. Especially in company acquisitions, equity stakes or investments, management needs well-founded analyses before far-reaching decisions are made.

      KPMG supports clients with an integrated due diligence approach that brings together financial, tax, commercial and operational issues. The aim is to make decision-relevant information visible at an early stage and to support the transaction with a clear view of risks, synergies and value potential.

      Data-driven negotiations

      Data rooms today contain thousands of documents, reports and analyses. The real challenge is to identify which topics actually influence the purchase price and which positions will hold up at the negotiating table.

      Our financial due diligence therefore goes beyond identifying risks and opportunities. We translate findings into concrete negotiating positions: What needs to be defended? Where does flexibility create room for better terms? And which topics ultimately decide the purchase price?

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      What determines the purchase price?

      Due diligence can deliver hundreds of findings. However, only a few of these are usually decisive for the purchase price.

      What matters, therefore, is not the number of findings but the negotiation relevance of each individual finding. Every material item within the equity bridge is assessed with regard to its robustness and its influence on the final price setting.

      A purchase price results from the strength of the positions that can be derived from the findings.

      We assess each material topic from three perspectives:

      • Defend

        Positions that are robust and should be consistently advocated.

      • Negotiate

        Positions that can be used selectively to create additional value elsewhere.

      • Concede

        Topics whose impact on the deal is limited and where a concession can make sense.

       

      Translating analysis into negotiation strategy is the real value creation of financial due diligence.

      AI acceleratesup the analysis, the assessment stays with the team

      Artificial intelligence is fundamentally changing the speed and depth of financial analysis. The evaluation and structuring of large volumes of data, as well as the identification of anomalies, are increasingly automated.

      Transactions, however, are negotiated by people. The difference is made by those who assess the results, judge their negotiation relevance and bring experience from comparable transactions.

      The value is created by the people who work with the technology. AI provides the foundation. Whether a position holds up in negotiations depends on who puts it into context, advocates it and asks the decisive question at the right moment. With or without AI, the difference is made by the Transaction Services team sitting next to you at the negotiating table.

      The market as a benchmark

      The negotiating positions we derive are based on market data.

      Using our AI-supported database, we analyse more than 1,200 negotiated transaction outcomes and classify positions by industry, transaction size and issue.*

      Every position put forward is measured against the market. This gives decisions an empirical basis and strengthens the ability to assert positions at the negotiating table.


      *Only information that is not subject to a separate confidentiality agreement is taken into account.

      Our Services at a glance

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      Identify

      Create transparency regarding financial risks, opportunities and value drivers.

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      Quantify

      Assess the impact on purchase price, net debt, working capital and purchase price mechanisms.

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      Positioning

      Developing strong negotiating positions for price and contract negotiations.

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      Support

      Assist management and deal teams right through to signing and closing.

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      Creating value

      Identify potential for value enhancement in the post-transaction period.

      KPMG provides support throughout the entire acquisition process

      KPMG supports management, investors and companies from the initial review of a target, through the preparation of negotiations, to implementation. The due diligence results are presented clearly, so that courses of action, deal breakers and negotiation points are easy to follow.

      We would be glad to define the relevant areas of review together, set up the analysis efficiently and translate the results into transaction decisions.

      Ready to take the next step?

      Submit RFP now

      KPMG Insights to Deal Advisory

      Your contact

      Christian Prokesch

      Partner, Deals & Performance, Head of Transaction Services

      KPMG AG Wirtschaftsprüfungsgesellschaft

      Frequently asked questions

      Due diligence is the structured review of a company before a transaction. It highlights opportunities, risks and value drivers, and thereby supports well-founded decisions on acquisitions, equity stakes or investments.

      Due diligence advisory makes sense when companies, investors or management are preparing a transaction and want to understand financial, tax or operational risks at an early stage.

      KPMG's due diligence advisory can cover financial, tax, commercial and operational analyses. The exact scope depends on the transaction objective, the industry, the available data and the decision-making needs.

      AI makes negotiating positions empirically robust. Using an AI-supported database of more than 1,200 negotiated outcomes, it is possible to assess whether a position is in line with the market. The professional assessment is still carried out by experienced experts.