Financial Due Diligence

FDD is an independent analysis of a company's financial performance and cash flow generation ahead of an acquisition or other transaction We identify normalised EBITDA (earnings before interest, taxes, depreciation and amortisation), normalised net working capital requirements and net debt position. We also identify potential risks that serve as a guide for both buyer and seller in determining valuation and transaction terms.

For buyers and investors, an FDD translates the numbers into clear, deal-focused insights: what is the structural profitability, what assumptions are included and where are the key risks. This helps to make more informed choices about price and agreements in the contract.

With a Vendor Due Diligence (VDD), we provide on behalf of the seller a independent assessment of the financial information and establish one consistent, well-supported basis for all bidders upfront. This increases transparency, avoids divergent interpretations and reduces the risk of discussions or price adjustments later in the process.

At Vendor Assist (VA), we stay actively involved throughout the process: we provide Q&A support, data room updates and calculate questions quickly. This keeps answers consistent, keeps the process tightly organised and maintains momentum towards closing.

Buy-side FDD: for buyers/investors, independent substantiation of earnings, NWC and net debt plus key risks and deal implications.

Vendor/sell-side FDD: for sellers in advance one consistent, independently assessed financial rationale for all bidders; less noise and repeat questions, better comparability between bids, more direction on the story towards price and enhanced credibility in the process.

Vendor assist: for vendors, in-process support for Q&A and data room queries; faster response times, consistent figures and answers throughout, and reduced process delays.

Red flag report: short, quick review focusing on the biggest financial risks and potential dealbreakers.

Normalised EBITDA shows what profitability is without one-off items and exceptions, so you value the business at a sustainable level. This avoids pricing based on one-off windfalls or temporary setbacks. It also gives a solid basis for discussions on multiple, earn-out and other pricing mechanisms.

After initial contact with one of the partners, we agree scope and materiality and you will receive a targeted information request list. We then conduct analyses and work through open points via Q&A in the data room and, where necessary, a management meeting to validate assumptions and exceptions. Finally, we deliver the report with clear conclusions and deal implications and, if required, we can conduct a step-by-step review of the report.