Financial Due Diligence Services

What is Financial Due Diligence?

Financial Due Diligence is a structured examination of a company’s:

• Financial statements

• Revenue quality

• Profit sustainability

• Working capital position

• Debt structure

• Tax exposure

• Cash flow patterns

The goal is simple: validate financial information and identify risks before closing the transaction.

When Do You Need Financial Due Diligence?

• Business acquisition

• Investment by private equity or angel investors

• Merger or amalgamation

• Strategic partnership

• Joint venture

• Fundraising round

• Buyout of shareholders

If money is changing hands, due diligence is not optional.

Our Financial Due Diligence Services Include

1. Quality of Earnings (QoE) Analysis

We assess:

• Sustainability of revenue

• Non-recurring income adjustments

• EBITDA normalization

• Margin consistency

• Revenue concentration risk

This ensures reported profits reflect operational reality.

2. Revenue & Receivables Review

We analyze:

• Revenue recognition policies

• Customer contracts

• Debtor ageing

• Bad debt exposure

• Related party transactions

Inflated revenue is one of the biggest deal risks. We test it thoroughly.

3. Working Capital Assessment

We evaluate:

• Inventory accuracy

• Payables structure

• Receivables cycle

• Working capital requirements

• Seasonality trends

This helps determine true funding requirements post-acquisition.

4. Debt & Liability Analysis

We identify:

• Secured and unsecured loans

• Contingent liabilities

• Off-balance sheet exposures

• Litigation risks

• Corporate guarantees

Hidden liabilities can destroy deal value. We surface them early.

5. Cash Flow & Fund Flow Review

We examine:

• Operating cash flow consistency

• Capital expenditure trends

• Debt servicing capacity

• Fund diversion indicators

Cash reality matters more than accounting profit.

6. Tax & Regulatory Exposure

We review compliance under:

• Income Tax Department

• Goods and Services Tax Council

• Ministry of Corporate Affairs

We identify:

• Pending tax assessments

• GST mismatches

• Statutory dues

• Compliance gaps

Deliverables You Receive

• Detailed Due Diligence Report

• Risk summary dashboard

• EBITDA normalization statement

• Working capital analysis

• Red flag report

• Recommendations for deal structuring

Our reports are practical, decision-oriented, and negotiation-ready.

Benefits of Financial Due Diligence

• Protects against overvaluation

• Strengthens negotiation power

• Identifies deal breakers early

• Reduces post-acquisition surprises

• Improves investor confidence

• Supports structured deal documentation

Why Choose N D Savla & Associates?

• Strong background in audit and financial reporting

• Transaction-focused analytical approach

• Experience with SMEs and growth-stage companies

• Confidential and independent review

• Clear, actionable insights

We don’t just analyze numbers. We interpret them in the context of your deal.