Comprehensive Financial Due Diligence Services
Financial due diligence is a crucial step in assessing the viability of mergers or acquisitions. It involves a thorough examination of records, financial data—including historical audited statements and future projections—and a critical analysis of their underlying assumptions.
Think of our financial due diligence service as a risk assessment tool designed to verify whether a business deal is worthwhile and sustainable.
Our Due Diligence Process Includes:
1. Business Review
- Evaluating the company’s incorporation details, jurisdiction, and operational scope.
- Understanding the nature and structure of the business.
2. Asset Review
- Identifying assets owned by the target company and validating their valuation methods.
3. Tax Review
- Analyzing relevant tax obligations such as PAYE, VAT, Corporation Tax, and SDLT.
- Ensuring all tax returns and payments are up to date.
4. Corporate Records Review
- Assessing the completeness and reliability of the company’s commercial and financial records.
- Verifying whether the records sufficiently explain transactions, accurately reflect the financial position, and support the preparation of audited financial statements and management accounts.
- Evaluating variable costs and sales forecast calculations.
5. Tax Warranties and Covenants Review
- Determining whether tax warranties and covenants provide adequate protection for the buyer.
6. Indebtedness Review
- Reviewing debt and liability apportionments to ensure accuracy in netting off against the purchase price.
7. Supplier and Customer Information Review
- Validating the completeness and accuracy of material customer and supplier information, including income and purchase volumes.
- Checking arrangements for management charges, if applicable.
8. Employment Review
- Reviewing employment contracts to ensure they are current and align with payroll records.
9. Compliance Review
- Summarizing the target’s tax position, identifying outstanding investigations, and noting any errors or omissions.
Why Choose Our Financial Due Diligence Service?
Our expert analysis helps minimize risks and ensures you have a clear understanding of the financial health and operational viability of your target company. By addressing all aspects—from tax compliance to asset validation—we provide you with actionable insights to make informed decisions.