Financial due diligence involves an investigative analysis of a business, assessing the key issues facing the business and the drivers behind maintainable profits and cash flows, identifying the key financial risks and potential deal breakers of the transaction.
Our work may relate to an acquisition of the shares in a company or its assets (or a group of assets) as well as the organised part of the enterprise. We conduct our projects in close cooperation with our clients and the investor’s other advisers, which enables us to achieve complete understanding of investors’ expectations and provide high-quality deliverables.
For leading investors, whether financial or strategic, it has become common practice to conduct commercial due diligence to increase confidence in financial projections. In a commercial due diligence engagement, we conduct an analysis of the potential target’s market environment and competitive position and their impact on the target’s business plan.
Our approach to commercial due diligence is adapted to individual client requirements. This analysis focuses on key issues crucial to the investor, relates, inter alia, to the review and assessment of assumptions made in budgets and forecasts of the target against market evidence and industry expectations in the sector. Furthermore, a commercial due diligence investigation enables the investor to both address potential market risks in the target’s valuation and recognise the target’s unrealised growth potential.