Financial due diligence is a thorough analysis of a company’s financial performance, profitability and position. It involves evaluating financial statements, assessing risks, and identifying potential opportunities.
Our transaction services team provide comprehensive financial due diligence services throughout the deal process to help our clients navigate complex situations. Some of the common areas we help with include:
- Developing pricing strategies,
- Normalised working capital and net debt,
- Reviewing historical performance/key trends, and
- Reviewing forecast performance.
Risk assessment
Understanding the risks associated with a transaction is vital. We conduct detailed risk assessments to identify potential financial, operational, and market risks, helping you to mitigate them effectively.
Cash flow analysis
Our team evaluates cash flow statements to determine a business’s liquidity and ability to convert profits to cash. We analyse cash flow patterns to forecast future performance and identify any issues.
Compliance review
Complying with financial regulations and standards is essential. We conduct thorough reviews of a business’s compliance with relevant accounting standards including UK GAAP and IFRS, helping to avoid potential pitfalls.
Sustainability and ESG
Sustainability related risks are on the rise as they affect the long-term resilience of your business. We provide support to analyse climate-related risks aligning to the recommendations provided by the Taskforce on Climate related Financial Disclosure (TCFD).
Regulators are also demanding increased non-financial disclosures. We can perform reviews of your sustainability related disclosures relevant to your corresponding jurisdictions including IFRS S1 and S2 and the European Sustainability Reporting Standards under the EU Corporate Sustainability Reporting Directive.
How we can help
We have vast experience advising businesses across a range of sectors and our team have the expertise to provide pragmatic and tailored advice to meet your objectives. You can find out more about the deals we’ve worked on.
In a recent transaction we supported a client with their first acquisition, providing financial due diligence services which led to an efficient process and gave our client clarity and confidence in the deal: “Their financial due diligence gave us confidence throughout the process and played a vital role in helping us complete our first acquisition successfully”.
