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 are revenue and market due diligence, synergy
validation, maintainable earnings, future cash flows and all operational
issues, as well as deal structuring.
How we can support
you
More about this
service
Potential issues
- 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 we can support you
- By enhancing the purchaser’s understanding of the target business and
therefore increasing the likelihood of the deal achieving its objectives
- By helping you to identify and understand critical success factors and
therefore improve your understanding of all the relevant issues so that
informed decisions can be made
- By highlighting strengths that can be built upon or weaknesses that can be
resolved.
More about PwC's financial due diligence services
- Commercial due diligence involves a comprehensive review of the company’s
business plan in the context of market conditions and the
industry/competition
- Strategic reviews help companies formulate their corporate strategy and
diagnose poor performance, providing a basis on which to prepare plans for
improvement and to evaluate new markets and potential acquisition targets. In
the case of financial institutions, they also help assess the feasibility of
business plans.