Financial Due Diligence

The careful, systematic and detailed investigation, examination and analysis of the data of an investment, take-over or merger candidate or the disclosure of information by the target object itself, describes „Due Diligence" .

It extends far beyond the formal audit of, for example, the annual financial statements or the trading books.

In Financial Due Diligence our support would typically include the following activities:

  • Analysis of the financial situation
  • Valuation of important accounting documents in terms of assessment changes and accounting changes
  • Examination of contracts concluded with customers, suppliers and employees with a view to their effect on the assets, finances and revenue of the target company
  • Derivation of purchase price relevant results e.g. EBITDA or EBIT
  • Analysis of the sales revenues and margins according to company sectors
  • Examination of existing financial forecasts and establishment of alternatives
  • Audit of the mathematical accuracy of the integrated planning

Further services related to Due Diligence:

  • Determination of possible deal breakers
  • Analysis of the company to identify important value drivers and the decisive success and risk factors
  • Advice on the form of the deal (acquisition structuring)
  • Valuation of the target
  • Support in the establishment and negotiation of the purchase price

In addition to Financial Due Diligence is Tax Due Diligence of great significance in relation to the acquisition of a company.

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