Financial Due Diligence
Financial due diligence is commonly performed as part of a business acquisition/investment/lending process and will cover the financial and taxation aspects of a business. The purpose of the due diligence is to identify any significant actual or potential issues in a business that a buyer/investor/lender should consider in reaching an informed decision.
Our services:
We undertake financial due diligence for purchasers, investors and for financial institutions to assist in investment and lending decisions.
Our financial due diligence work is led by a corporate finance partner and will typically involve corporate, payroll and VAT tax specialists along with pension and human resource specialists as and when appropriate.
The scope of the financial due diligence will depend upon your requirements but typically will cover the following areas:
- History and operational - to ensure that the history and operational side of the business is fully understood
- Human resources - to understand the ongoing, future and potential obligations/commitments covering payroll, pensions, other employee benefits, disciplinary issues, and disputes
- Management information systems - to establish whether the financial and reporting systems and procedures are adequate in the business
- Financial information - to ensure the recorded results and performance, balance sheet assets and liabilities, and forecast information, provide a true and fair representation of the business and to make an assessment of the future working capital requirements of the business
- Commitments and contingencies – to ensure the business’ current, future and potential commitments are fully understood
- Taxation - to ensure the various taxes, such as corporate, pay as you earn, national insurance and value added tax, are being operated in line with taxation legislation and to ensure that the current position is fully understood
