Due diligence
Comprehensive business review before an acquisition or investment
Due diligence is carried out when a business is acquired, when an investor takes a stake and when finance is raised.
We examine the company's economic attractiveness and the structure of its assets and liabilities, and identify the key value drivers and investment risks.
Finappraisal carries out due diligence in key areas
Financial due diligence
Analysis of revenue, profitability and cash flows, quality of earnings, working capital and net debt, and a review of the reasonableness of management forecasts
Accounting due diligence
Verification of the reliability of financial statements, analysis of accounting policies and of the composition and measurement of assets and liabilities, and identification of unrecorded and contingent liabilities
Tax due diligence
Analysis of the tax burden and tax risks, the results of tax audits and disputes, and transactions with related parties
Legal due diligence
Review of the corporate structure, title to assets, material contracts, encumbrances and litigation
Business valuation
Market value of the company, taking into account the risks identified, to support the transaction price
The result is an analytical report on the company's financial condition and on the risks and factors affecting the investment decision; it is used in agreeing the price and terms of the transaction.