What is Financial Due Diligence?

Every investment has its own level of risk, and without due diligence, the investor may be unable to understand that correctly. A systematic process helps to ensure that buyers and other stakeholders are on the same page at the time of a purchase.

Financial due diligence (FDD) is a critical process in Buy Side Advisory of M & A Transactions.

FDD process helps to verify and review a potential deal and investment opportunity that is used to confirm all relevant facts and financial information, and verification of anything brought up during M&A deals or investment process.

Key Areas within Financial Due Diligence services

• Business Operations incl. model, service categories, supply chain, customers
• Revenue Analysis & Receivables incl. trends, recognition, dependencies, variations
• Cost and Margin Analysis incl. trends, major drivers, compliance
• Fixed Assets incl. physical verifications, application, records, depreciation
• Working Capital incl. collection terms, provisioning, monthly requirements
• Debt incl. terms, utilization, claim, notices
• Related Party Transactions incl., terms, personal transactions
• Financial Statements incl. quality and reliability
• Human Resources incl. policies, terms, commitments, stability
• Risk Management incl. availability of SOP, RCM, testing results analysis
• Examination of availability of assets
• Analysis of quality of assets

Why FDD

With our financial due diligence service portfolio, we provide valuable information/insights about financial performance of the organization to support the proposed acquisition and valuation after having related impact of issues.