Our Due Diligence Process
1. Financial Review
As part of our due diligence audit services, we conduct a detailed financial review tailored to the role we play in the transaction.
When representing buyers, we typically:
- Review and validate pro-forma EBITDA and key financial metrics
- Assess add-backs and non-recurring items for accuracy
- Evaluate normalised working capital requirements
- Analyse operating cash flows and key value drivers
- Review net debt positions and funding structures
- Assess the reasonableness of financial forecasts and projections
- Evaluate assumptions supporting the business valuation
- Review related-party transactions and standalone cost structures
When representing sellers, we typically:
- Prepare, organise, and manage financial information for due diligence
- Support discussions and negotiations on key financial aspects of the transaction
- Provide an independent assessment of the business value presented to potential buyers
2. Financial Statements & Accounting Policies Review
As part of our due diligence audit services, we review the target company’s historical financial statements, accounting policies, and financial reporting practices to assess accuracy, consistency, and compliance.
This review typically includes:
- Evaluation of accounting systems, records, and supporting documentation
- Review of internal accounting procedures and financial controls
- Examination of audited financial statements, including cash balances, trade receivables and payables, property, plant and equipment, contingent liabilities, asset impairments, and revenue and expense recognition
- Review of auditors’ working papers and key audit findings
- Assessment of tax liabilities, exposures, and compliance obligations
3. Business & Operational Review
As part of our due diligence audit services, we conduct focused reviews of the target company’s business environment and operational structure to identify commercial risks and performance drivers.
Our review may include an assessment of:
- Industry dynamics and market positioning
- Competitive landscape
- Products and service offerings
- Customer base and concentration risks
- Key suppliers and dependency risks
- Sales and marketing strategies
- Information technology systems and infrastructure
- Human resources structure and key personnel matters
This business-level analysis complements our financial review, providing decision-makers with a holistic understanding of operational sustainability and growth potential.