Financial and accounting due diligence
Financial and accounting due diligence is an activity involving the verification, analysis and control of three fundamental aspects of a target company: operating results, financial position and cash flows, in view of a global extraordinary transaction (M&A) or a single check-up.
Extraordinary transactions are a delicate and complex time in the life of a company. Financial due diligence services maximise the effects of the deal for all parties involved, as well as first of all establishing beforehand the feasibility of the entire transaction, its execution methods and impacts on taxation.
We provide support in analysing historic and current trends and outlooks, in order to assist companies in acquisitions, divestment and strategic alliances.
By conducting these investigations, we evaluate the advantages and risks of a business deal for our clients, to establish elements of feasibility or critical aspects in relation to extraordinary transactions. Analysis of financial position is accompanied by tax due diligence, which is the key to identifying any elements of risk or critical issues not revealed by the seller.
Meeting these objectives involves conducting investigations, including of an accounting nature, which can affect the income statement and balance sheet data used as a basis for calculating the company’s value.
Our services
Financial due diligence activities
Our team of expert consultants in financial due diligence activities can assist you with the structuring of transactions and in the drafting and negotiation of purchase and sale contracts, at various stages of the negotiations, before, during or on completion of M&A transactions.
We aim to help you maximise the value of the transaction and comprehend the tax implications of the ownership transfer of the target companies.
Buy-side and sell-side financial due diligence
This activity is completed before entering into the contract and focuses on the salient aspects of the negotiation. The outcomes influence the decision to conclude the deal and enable informed drawing up of the purchase contract and its terms and conditions.
Post-signing and pre-closing financial due diligence
Verification activities carried out when a contract already exists between the parties but is not final. In this case, the investigation activity involves verifying the data acquired and steers subsequent negotiations, such as the transparent definition of the relevant accounting standards.
Post-closing checklist
Lastly, we support clients in the “post-closing” phase, with regard to planning the most suitable strategies to manage, minimise and eliminate the areas of risk highlighted during the due diligence process. We offer a detailed analysis following the conclusion of the contract, enabling the buyer to gain in-depth knowledge of the asset they have purchased.
This activity is completed before entering into the contract and focuses on the salient aspects of the negotiation. The outcomes influence the decision to conclude the deal and enable informed drawing up of the purchase contract and its terms and conditions.
Verification activities carried out when a contract already exists between the parties but is not final. In this case, the investigation activity involves verifying the data acquired and steers subsequent negotiations, such as the transparent definition of the relevant accounting standards.
Lastly, we support clients in the “post-closing” phase, with regard to planning the most suitable strategies to manage, minimise and eliminate the areas of risk highlighted during the due diligence process. We offer a detailed analysis following the conclusion of the contract, enabling the buyer to gain in-depth knowledge of the asset they have purchased.