Financial due diligence

Any organisation considering a deal needs to check all the assumptions it is making about that deal. Financial due diligence provides peace of mind to both corporate and financial buyers, by analysing and validating all the financial, commercial, operational and strategic assumptions being made. It uses past trading experience to form a view of the future and confirms that there are no 'black holes'.

The components of the service include revenue and market due diligence, synergy validation, maintainable earnings, future cash flows and all operational issues, as well as deal structuring.

If this is your situation:

  • You want to strengthen your company's core business by acquiring rival products that are almost identical in function/performance to your own.
  • You need to build on your company's existing activities by purchasing complementary products.
  • You want to purchase a company to gain access to its existing products in new markets, or to increase your customer base.
  • You need to expand your company's current portfolio of products and services through the acquisition of new ones - potentially to provide a hedge against the movements in the markets in which the company operates.
  • You want to spread your company's market risk by purchasing a company providing similar products or services in another country.

How PwC can help you:

  • We can enhance the purchaser's understanding of the target business and therefore increasing the likelihood of the deal achieving its objectives.
  • We can help you identify and understand critical success factors and therefore improve your understanding of all the relevant issues so that informed decisions can be made.
  • We can highlight strengths that can be built upon or weaknesses that can be resolved.