Financial due diligence is an analysis that represents a detailed check, research and analysis of the company's business, key problems and risks it faces, as well as drivers of profitability and cash flow.
This analysis is most often conducted in company sales or purchases transactions, but also for internal business purposes.
Financial due diligence usually includes the following activities:
- analysis of the company's business
- analysis of the company's financial position
- analysis of key accounting documents
- analysis of contracts concluded with suppliers, customers and employees
- analysis of income and expenses or actual earnings of the company
- analysis of EBITDA and other key performance
- reality of financial projections
- advising on the purchase price
Due to the specifics of each individual transaction in which the Financial due diligence analysis is necessary, WTS expert team makes the necessary adjustments to the activities in order to obtain more relevant results of the analysis itself.
Of crucial importance in transactions where it is necessary to perform financial due diligence is also tax due diligence in order to obtain a complete picture of your company's business.