Financial Due Diligence

What is Due Diligence?

Due diligence is a review or audit of a business performed before an acquisition is completed. Financial due diligence is a type of due diligence that involves reporting and verifying the financial information provided and assessing the underlying performance of the business ahead of a transaction. This works to both confirm the validity of information, as well as determining how robust financial situations might be in the future.

Earnings, assets, liabilities, cash flow, debt, sales, contract security, and financial management processes are usually considered as part of acquisition due diligence.

Why Perform Due Diligence?

Conducting financial due diligence verifies the researched or supplied information about the target business, ensuring the information presented in financial statements is accurate and sustainable for future growth.

Through due diligence as part of the M&A process, GS Verde's deal advisory team can confirm the condition of the target business, helping buyers protect their position and gain true insight into the opportunity.

Buying a Business?

Financial Due Diligence
Financial Due Diligence

Reverse Due Diligence

Reverse due diligence is an important stage in business sale preparation. The process involves reviewing all areas of the business through the lens of a third party to identify any areas of risk and allow time to make improvements ahead of the due diligence checks from the acquirer

Performing these reverse due diligence checks as part of M&A preparations, in advance of the formal transaction process, ensures the business is prepared for sale by pre-empting and resolving any issues, reducing the potential for delays and potentially increasing the sale value.

Selling a Business?

GS Verde Corporate Finance is part of the GS Verde Group, a multi discipline group supporting businesses from start to finish on corporate transactions such as raising investment, mergers & acquisitions and business sales.

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Financial Due Diligence