Financial due diligence is a process that helps potential investors or buyers to assess the financial health and risks of a target company before making an investment or acquisition decision. Financial due diligence provides a comprehensive analysis of the target company’s financial information to enable investors or buyers to make an informed decision on the viability of the investment or acquisition.
Buying a company involves a great deal of risk as to the real health and situation of the company. A dedicated evaluation of the company is required to the true picture and situation of the company to protect the interest of all state holders. Insights in the United Kingdom offers our seasoned team of professionals with successful M&A assignments that assist you in meeting your financial & operational due diligence to make the decision-making process for you to be as easy as possible.
- Financial Review allows the integrity of financial statements provided by the vendor/seller. We assess the appropriateness basis used for valuation/pricing purposes, adequacy of cash flows/working capital, and cash flows review the reasonableness of financial forecasts.
- Operational Review helps assess the efficiency and effectiveness of internal controls of the company. This may include the review of business processes and the overall governance of the company.
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 the target business and provides you with relevant information for an objective deal assessment;
- Identify and qualify critical success factors to help make informed decisions.
- 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 reviews 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 the due diligence report;
- Identify hidden costs, commitments, and contingencies;
- Effectively manage the sale process
- Present an unbiased assessment of potential opportunities and risks