Buy a business
Financial Due Diligence
Check that the earnings, cash and balance sheet you are paying for are really there – with diligence scaled to the size and risk of the deal.
What you get
What’s included
- Quality of earnings
- Revenue, margins and customer concentration
- Working capital and cash conversion
- Balance-sheet and debt-like items
- Forecast review
Why it matters
Due diligence is where assumptions meet evidence. Findings on earnings quality, working capital or debt-like items can affect the price or commercial structure of a deal and highlight matters for your legal advisers to consider in the transaction documents. In some cases, they may change whether you want to proceed.
We agree the scope with you at the start, focusing on the areas that matter most for this business and this deal, and report in plain English.
What we typically look at
The scope is agreed for each deal. It commonly includes:
- Quality of earnings – whether reported profit reflects sustainable trading.
- Revenue and margins – trends, customer concentration and what drives profitability.
- Working capital – the level the business normally needs to trade.
- Net debt and debt-like items – borrowings, leases, deferred income and other items that may affect the price.
- Forecasts – whether the assumptions are reasonable in light of past performance.
What affects the scope
The size and complexity of the business, the quality and availability of its records, the timetable, and the risks identified earlier in the process. We agree the scope and timing with you before the work starts. See all prices.
How it works
Scope
Agree the focus areas, information request and timetable.
Investigate
Analyse the information and raise questions with the seller.
Report
Clear findings and their financial and commercial implications for price and deal structure, with legal protections addressed by your legal advisers.
FAQs
Common questions
Is this the same as legal due diligence?
No. Financial due diligence complements the legal due diligence carried out by your legal advisers, and can highlight matters for them to consider.
Can the scope be limited?
Yes. Diligence can be focused on the highest-risk areas or more comprehensive, depending on the deal.
When should it start?
Usually once Heads of Terms are agreed. Timing depends on the scope of the work and on the quality and completeness of the information available. We agree it with you before the engagement starts.
Related services
- Acquisition Assessment
Valuation, structure and offer support.
- Full Acquisition Partner
Ongoing support through the whole acquisition.
- Buying a business
The acquisition process, step by step.
- Funding
Funding readiness, financial modelling, forecasting and preparation of lender information.
Next step
Interested in Financial Due Diligence?
We agree the scope and pricing with you before work starts.