Ashgates

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Financial Due Diligence

It is important when undertaking an acquisition that a potential buyer undertakes due diligence in order to confirm the accuracy of the information supplied by the vendor on which reliance is being placed and also to confirm that the assumptions upon which the buyer has based financial forecasts are reasonable.

At Ashgates we have extensive experience of providing an independent assessment of the business and highlighting any areas of commercial or financial risk.

Our due diligence report will be tailored to your specific requirements, which would be agreed with you in advance.

The due diligence report would normally address the following areas:-

  1. The dynamics of a business, identifying key performance indicators, industry trends and any seasonality, which may affect the business
  2. The strengths and weaknesses of the management
  3. Identifying contingent liabilities
  4. The existence and valuation of items being acquired
  5. Taxation threats and opportunities
  6. The quality of the financial information system
  7. Proposed structure of the transaction

 

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