Financial Due Diligence FDD

The deep dive after your LOI

Once you’ve signed a Letter of Intent, the stakes get real. You need to be absolutely certain that the business you’re buying is as solid as it looks – that earnings are sustainable, liabilities are disclosed and there are no nasty surprises lurking in the books. A thorough Financial Due Diligence (FDD) engagement provides that assurance.

Why FDD matters

Unlike a quick review, FDD is a comprehensive investigation into the financial and tax position of the target. Skipping this stage can lead to overpaying, financing issues or inheriting liabilities you didn’t expect. A disciplined FDD examines every aspect of the business to identify red flags and quantify adjustments before settlement



What we do

Our process is structured in phases to ensure nothing is overlooked:

Phase 1 – Understanding the business and red flags

  • Detailed document review: We gather and analyse financial statements, tax returns, bank statements and operational data to verify accuracy and completeness
  • Red flag identification: Early detection of anomalies, unusual transactions and off‑balance‑sheet items that could impact the purchase price or feasibility

Phase 2 – Analysis and reporting

  • Customised Quality of Earnings analysis: We perform an in‑depth QoE assessment, including cost of goods analysis and multi‑year P&L review
  • Growth and risk assessment: Evaluating past and projected growth rates, customer concentration risks, operating expense trends and seasonality of cash flows
  • Working capital analysis: Reviewing historical working capital patterns to prepare a normalised working‑capital peg for the transaction
  • Proof of cash: Reconciling bank deposits to reported revenue to confirm that cash transactions align with the financial statements
  • Tax and compliance review: Checking GST, PAYG and other tax obligations to ensure no hidden liabilities or compliance issues.

Phase 3 – Delivering actionable insights

  • Comprehensive report: We provide a detailed report with normalised earnings, working‑capital adjustments, tax exposures and a list of deal‑critical issues.
  • Negotiation support: We help you interpret the findings and use them to adjust price, terms or walk away if the risks outweigh the opportunity.
  • Post‑deal integration guidance: Recommendations for financial controls and reporting improvements to ensure a smooth transition and protect your investment.



Benefits

 Protect your investment
Identify financial risks, undisclosed liabilities and tax exposures before you close

Strengthen your negotiation position
Use our detailed adjustments to secure price reductions or enhanced warranties

 Ensure financing approval
Provide lenders and investors with the level of analysis they require to fund the transaction

Plan for day one
Understand working capital needs and cash flow dynamics so you can hit the ground running after acquisition.

Who it’s for

Our FDD service is designed for buyers who have signed an LOI and need a comprehensive examination
before completing a purchase. 

Ready to go beyond the sniff test?

If you’re about to commit capital, you need more than surface‑level analysis.
Book a Financial Due Diligence engagement with us to ensure your deal is built on solid ground.