All financial deals involve risk and the interests of all stakeholders need to be protected before entering into any transaction. Both parties to the financial deal – buyer and seller, need to ascertain that the financial information pertaining to the business being acquired is accurate and to assess whether their governance and risk management objectives are met. This is where our team of seasoned professionals can assist and advise you in your financial, commercial, and operational due diligence in order to help you maximize the value from a proposed transaction through the following reviews:
A. Financial Review to assess the integrity of financial information provided by the vendor/seller; assess the appropriateness of basis used for pricing/valuation; assess the adequacy of cash flows and working capital to support business operations; and assess the reasonableness of financial projections/ forecast.
B. Operational Review to assess the effectiveness of internal controls and business processes; and assess the effectiveness of the governance.
Financial Due Diligence (buy side)
Financial due diligence helps our clients
(potential buyers) build assurance on quoted business value for M&A transactions under review and draws attention towards critical success factors related to the target business.
Financial due diligence helps you to:
- Understand target business and provides you relevant information for an objective deal assessment;
- Identify and qualify critical success factors to help make informed decision.
- Highlight strengths, weaknesses, opportunities and risks involved in the proposed deal.
Vendor due diligence (sell side)
Vendor due diligence aims to maximize value, minimize disruptions and manage separation vulnerabilities during the disposal process. We support our clients (vendors) by conducting vendor due diligence review comprising an in-depth financial health report to the potential buyer, where a company or any unit is up for sale by the vendor.
Vendor due diligence helps you to:
- Address potential buyer-centric concerns in due diligence report;
- Highlight issues likely to affect the purchase price or contract conditions;
- Identify hidden costs, commitments and contingencies;
- Effectively manage the sale process
- Present an unbiased assessment of potential opportunities and risks.