Services
Financial Due Diligence
An independent financial assessment of a company’s financial position, resilience, key risks and underlying financial health before an important business decision is made.
Scope
The specific scope and way of working are defined after an initial conversation and review of the context.
How we can help
Financial due diligence is an independent and in-depth assessment of a company’s financial position, performance and underlying financial health. It is particularly relevant to business acquisitions and disposals, the admission of a new shareholder, attracting investment, securing financing or other strategic decisions where a clear and objective understanding of the business is required. We analyse the company’s financial statements and key financial indicators, examining revenue and its sustainability, the structure and nature of expenditure, profitability, liquidity, indebtedness, cash flow and working capital. We look for unusual, one-off and non-recurring items, identify potential financial risks, and assess dependencies on key customers, suppliers and other factors that may influence the future performance of the business. Where included within the agreed scope, we also assess financial forecasts, budgets and key business assumptions, connecting the financial information to the underlying business model. The objective is not simply to understand the results reported in the accounts, but to understand what sits behind those results and what they may mean for the value, financial resilience and future prospects of the business. The client receives a structured, evidence-based assessment of the company’s financial position, highlighting identified risks and areas requiring particular attention. Our approach combines analytical rigour with professional independence. We do not simply look for inconsistencies in the figures; we seek to build a coherent financial picture of the business and the factors that may affect the decision at hand. Financial due diligence is not an audit and does not constitute a substitute for an audit examination. It is an independent financial analysis undertaken for a defined purpose and within a specific scope agreed with the client in advance.
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