Financial due diligence is a process of verification and investigation of financial records for a potential deal to confirm all relevant facts and financial information, and to verify anything else that was brought up during an M&A transaction. Financial due diligence is completed before a transaction closes to provide the buyer with an assurance of what they’re getting. Issues and concerns identified during the financial due diligence exercise has varying impact on the valuation of the transaction.
Buy-side Due Diligence
We assist and advise the buyer in the transaction by undertaking and identifying key value drivers, risks and opportunities associated with the transaction. We identify and report any potential issues that the target business might be facing.
To help you achieve the transaction objective, KPI can help you with
- Enhancing your understanding of the targets business
- Identify and understand critical success factors
- Identify potential synergies going forward and weaknesses/ threats that should be resolved
Sell-side Due Diligence
Also known as Vendor due diligence, it is usually undertaken by the seller highlighting the financial strength of the business or division put up for sale. A third-party vendor due diligence report detailing in-depth financial health of the seller provides a greater degree of assurance to the buyer.
To help you achieve the transaction objective, KPI can help you wit
- Providing greater control over the entire sale process thereby helping obtain deserving value for the business
- Providing the buyer with higher level of comfort over the nature of business and the characteristics of its cash flow.
- Vendor due diligence report aids buyer and thereby reducing the buyers time on significant access to due diligence.
- Identification of potential critical areas that could be fixed before the potential sale