M&A advisors
Value focused financial due diligence
of the highest quality
Services
What we do
With more than 10 years of experience with M&A and financial due diligence and hundreds of deals behind us across industries and borders and for both buyers and sellers, we are confident to insure that we:
- Provide financial due diligence of the highest quality
- Focus on the value drivers having the largest financial impact for you
- Communicate in a concise manner and overall contribute to a pragmatic and smooth process
What financial due diligence is
With roots in the Purchase Act, you as a buyer has an obligation to examine the object you are buying. This also applies when buying a business, and many buyers therefore carry out financial, legal and commercial due diligence. To reduce buyers’ need for investigating the object to be bought, seller may conduct sell-side due diligence.
The primary focus of financial due diligence, is to test the assumptions underlying the valuation of the business and to calculate the purchase price. For this reason, the financial due diligence scope will almost always cover analyses of EBITDA, net working capital and net debt.
The final financial due diligence scope may depend on industry, the process planned (exclusive / competitive), the nature of the buyer (strategic / financial) amongst others, and may cover the following matters;
- Revenue and gross margin development driven by price, volume and mix between customers and products
- Underlying growth rates adjusted for acquired/lost customers/companies
- Impact from currency fluctuations
- Variability in and scalability of cost base
- Capacity and potential capacity restraints especially in manufacturing companies
- Level of investments in maintaining and/or expanding operations
- Cash flow generation and EBITDA conversion to accommodate potential debt service
- Quantification of synergies between buyer and seller
- Stand-alone performance in carve-out deals
Credentials
Team
The team behind Informed