Financial Due Diligence

Service Overview

Financial Due Diligence in an M&A transaction tests the target's historical earnings, cash flow, working capital and debt so the price and the sale agreement reflect reality.

Findings typically drive the price mechanism — net debt, working-capital targets, locked-box or completion-accounts adjustments — and specific warranties and indemnities.

What’s Included
  • Quality of earnings and normalised EBITDA
  • Revenue and margin trends
  • Net debt and debt-like items
  • Normalised working capital
  • Cash conversion
  • Off-balance-sheet liabilities
  • Price-mechanism input (locked box / completion accounts)
  • Key SPA protections
What You Receive
  • Financial due diligence report
  • EBITDA bridge
  • Net-debt and working-capital schedules
  • SPA recommendations

How We Deliver It

  1. 01
    Request

    Issue the information request and access the data room.

  2. 02
    Analyse

    Analyse financial data and adjust earnings.

  3. 03
    Discuss

    Clarify issues with target management.

  4. 04
    Report

    Report findings and price implications.

Who This Is For

  • Acquirers
  • Private-equity investors
  • Lenders financing acquisitions

Popular Question

The questions we hear most often about this service.

A price fixed on a historical balance sheet, with protection against value leaving the business before completion.

Accounts prepared at completion to adjust the price for actual net debt and working capital.

EBIT's transaction team, with specialists as needed.

Tax due diligence can be included or run alongside.
At a Glance

Typical timeline

Typically 3–6 weeks.

Confirmed in writing after your scoping call.

What we’ll need from you

  • Data-room access
  • Management accounts
  • Audited financials
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