Financial due diligence and timely professional advice enhance the quality of decisions on significant business transactions.

Margins of error are thinner and investors and lenders are unforgiving of poor decision-making and execution. In these circumstances financial due diligence and timely professional advice enhance the quality of decisions on significant business transactions.

How we can help:

Using investigative analysis to assess the key issues facing a target business and the drivers of its historic and projected profits and cash flows:

Understanding the structure of the contemplated target

• We summarise on the history of the target and describe the current shareholding and management pattern;
• We describe the current product profile for key products;
• We describe the key accounting policies in place

Identifying the business environment of the contemplated target

• We assess the strengths and weaknesses (commercial and operational considerations) of the business against industry benchmarks;
• We identify any tax and legal issues needing further specialist investigation
  

Performing a high level financial review and identify the potential deal breakers

• We analyse the key drivers of underlying the historical financial performance and cash flows;
• We investigate on the quality of earnings, and the sustainability of cash flows;
• We comment on the forecasted financial performance and cash flows;
• We perform an analysis of the main components of the balance sheet (including working capital requirements and net debt position);
• We summarise on liabilities and off-balance sheet commitments
  

Identifying the impact of the transaction on the target business

• We identify any arising people issues (key management, pensions, compensation, benefits);
• We summarise on other separation costs (e.g. people, IT, central costs)