Financial Due Diligence
Before a financial transaction, business leaders rely on financial due diligence to mitigate risks and gain insights.
Financial due diligence can help you gain leverage in negotiation and minimise unwanted surprises when buying or investing.
Financial due diligence is a comprehensive and investigative process aiming to assess a company’s financial strengths by examining its financial data. The aim of financial due diligence is to help investors see if the deal is worthwhile and have a better understanding of the potential risks and opportunities before signing on the dotted line.
Financial due diligence is often required in one of the following situations:
- Before making an investment – this can range from before buying a distressed asset to investing in a new project.
- Before a merger or acquisition – financial due diligence can correct or confirm the claims of the target company.
- During negotiations – financial due diligence can reveal insights that help you gain leverage.
- When your business needs additional funding.
- When your company is in dispute with another organisation.
- When you want to sell your company and requires a vendor due diligence. Vendor due diligence is a type of financial due diligence but the aim is to analyse key risks and opportunities for potential buyers.
Call Blackhawk Intelligence on +44 (0)20 8108 9317 for financial due diligence today.
Blackhawk Intelligence’s financial due diligence services can help
Blackhawk Intelligence’s financial due diligence services deliver all the information that you need to make confident strategic decisions.
Our financial due diligence reports are comprehensive and they can cover:
- An executive summary
- Nature of the (target) company
- Nature of the asset
- Review of taxes
- Review of corporate records
- Review of financial information
- Review of tax warranties and covenants
- Review of indebtedness
- Review of suppliers
- Review of debt/ interest
- Report of industry benchmarks
- Check tax compliance
- Plus other personalised reviews specific to your organisation
Personalisation is key
No two organisations are the same, so what is included in financial due diligence that we carry out for you should be unique too. For example, if the target company is in commercial real estate, the financial due diligence should include material tenants and volume of rental income when applicable.
Global reach, local knowledge
We operate globally and have the necessary local contacts in most instances to carry out financial due diligence into companies located in another jurisdiction. Our team is comprised of specialists skilled in qualitative, quantitative, regulatory and technology processes and techniques.
Financial due diligence methods
In a typical case, financial due diligence involves reviewing of financial statements, conducting interviews with key executives, and managing benchmark analysis, to name but a few.
The key to gaining an accurate understanding of a company’s financial situation often starts with a good set of questions and know how to present the questions to the right people. This is what our team excels at, allowing us to gain intelligence that matters the most to your company.
We are also thorough. In addition to reviewing financial statements of the company, we check for information from other available sources, leaving no stone unturned.
The desired level of information
In most instances, financial due diligence is highly comprehensive and packed with information. But in some cases, it can be shortened to fit a situation.
For example, financial due diligence is often conducted after negotiations and after you have signed a Letter of Intent. But successful business leaders know that this could be too late and they often require a quick financial assessment before any negotiation and this is an area which we can help too.
Experienced, flexible, and trusted by investment companies around the world, our financial due diligence service delivers intelligence that matters to your company.