Most due diligence stops at the P&L. The things that destroy acquisition value — working capital traps, earnings adjustments, undisclosed liabilities — are almost never in the headline numbers.
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Financial due diligence is the process of independently verifying what a business actually earns, what it actually owns, and what it actually owes — before you buy it. Done properly, it protects you from paying too much, taking on undisclosed liabilities, and discovering problems after it's too late to do anything about them.
Most acquirers rely too heavily on the information provided by the seller. That information is always presented in the most favourable way. Our job is to look behind it — to normalise the earnings, stress-test the working capital, and identify the things that could materially affect the deal price or your willingness to proceed.
"The things that kill acquisitions — or destroy value after completion — are almost always visible in the numbers before you sign. You just need to know where to look."
This is a standalone service, available as a discrete due diligence engagement — ideal where you want independent financial analysis alongside your legal team, or where you're already in an acquisition process and need a financial specialist to review what's in the data room.
We can start work quickly. Book a call today — we'll tell you immediately whether we can help within your timeline.
Book a call →These are the patterns we've seen repeatedly — in deals that completed well and in deals that should never have completed at all.
Six analytical workstreams, culminating in a clear written report with findings and recommendations.
A thorough analysis of the business's reported earnings — identifying non-recurring items, add-backs, revenue recognition issues, and anything that inflates or distorts the maintainable EBITDA figure that forms the basis of the valuation.
An assessment of the business's working capital requirements — what a normalised level looks like, what's in the deal, and whether the working capital peg in the SPA is appropriate. Working capital traps are one of the most common sources of post-completion disputes.
Reconciling reported profits to actual cash generated — because EBITDA and cash flow can diverge significantly in businesses with high accruals, growing debtors, or capital requirements not reflected in the management accounts.
A line-by-line review of the balance sheet — identifying undisclosed liabilities, questionable asset valuations, related-party positions, and anything that could affect the effective price you're paying once the deal adjustments are made.
Not just finding the issues — but quantifying their financial impact so you can make informed decisions: renegotiate price, seek warranty protection, restructure the deal, or walk away with clear justification.
A clear, professional report setting out our findings, the financial risks identified, our view on warranted adjustments to price or structure, and specific recommendations for how to proceed — including deal-specific warranty and indemnity considerations.
We discuss the deal, the timeline, and what information is available. We'll tell you immediately whether we can help within your window and what a scoped engagement would involve.
We provide a clear information request list. You share access to the data room or provide the financial information directly. We typically need 3 years of statutory accounts, management accounts, bank statements, and the current data room contents.
We work through the financial information systematically — quality of earnings, working capital, cash flow, balance sheet, and risk identification. We'll flag significant findings to you as they emerge, rather than waiting until the final report.
We'll provide a list of questions for the vendor or their advisers — areas that need clarification or further information. We can attend or support management question sessions if needed.
You receive a clear written report and a debrief call — walking through the findings, the financial risks, and our specific recommendations on how to approach the next stage of the deal.
"Steve found a working capital issue that would have cost us £180,000 more than we expected post-completion. The due diligence fee paid for itself thirty times over before we'd even signed."
Book a free 30-minute call. If you're in a live deal, we'll tell you immediately whether we can help within your timeline.
Fast turnaround available for live deals.
Full acquisition support — valuation, deal structuring, negotiation, and due diligence oversight from start to finish.
Learn moreIf you're the seller — understand what buyers will find before they find it, and address the issues that could derail your deal.
Learn morePost-acquisition CFO support — build the reporting framework and financial controls you need from Day 1.
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