Financial due diligence
During our analysis of historical financial results we focus on areas that determine the commercial aspects of the planned transaction, including:
- Identifying the key issues facing the business of the Target and the drivers behind maintainable profits and cash flows
- Calculating the total debt burden and necessary working capital to ensure a more precise valuation
- Identifying other risks that require legal protection in the SPA (guarantees, warranties), implementing certain actions after signing the SPA (conditions precedent), as well as other mechanisms for managing risks / value leaks
Our analysis covers the following aspects:
- Historical financial performance and position
- Sustainable (normalized) earnings
- Working capital and total net debt
- Fixed assets
- Key contract terms
- Off-balance-sheet liabilities
- Quality of information
