Transaction services – financial due diligence

Financial due diligence is a vital part of the acquisition process. Our approach enables you to have a full understanding of the business from both an operational and financial perspective. We help you identify and avoid the risks associated with the acquisition as well as providing a strong foundation for seamless post-acquisition integration.

As part of our transaction services, we undertake due diligence for:

• corporate acquirers – reporting directly to their management team and liaising with their funders, where appropriate;
• banks and private equity firms – that are considering funding an MBO or MBI;
• vendors – who wish to provide an independent financial due diligence report to potential buyers.

Vendor due diligence 

Why would a seller carry out due diligence?

An independent due diligence report prepared by the vendor can mean that potential problems and key issues can be addressed quickly and early in the process. It also helps sellers

identify potential issues before they impact the structure and value of the deal.

How we help – the WMT approach

We start by understanding your specific needs. The next step is to determine the exact scope of your due diligence, which will include:

• a summary of key strengths and weaknesses of the target business;
• an evaluation of the business’s financial forecasts, including the strength of the underlying assumptions and key sensitivities;
• an assessment of the company’s tax affairs;
• a recommendation on how to minimise risks and liabilities.

To provide you with a more comprehensive understanding of the target business, we can review:

• the company’s historic performance, cash flow, working capital, profit and loss account;
• assets and liabilities;
• market intelligence – key drivers, customers, competitors, and product range;
• internal financial systems and controls.

We provide you with relevant and pragmatic advice. Our analysis, conclusions, and recommendations are focused on identifying and resolving issues at the earliest opportunity, delivering a robust assessment of the security of your potential investment. To support you in the next phase, we can also review your post-acquisition integration plan.

Get in touch with our corporate finance team for more information on how our transaction services can benefit your acquisition.