Financial Due Diligence
Independent, robust financial analysis to support informed investment and lending decisions.
Request Due DiligenceWhy Financial Due Diligence Matters
Investment and lending decisions require robust financial analysis to validate value drivers, identify risks, and inform negotiation strategies. Without comprehensive due diligence, stakeholders risk overpaying, assuming hidden liabilities, or missing critical issues that impact post-transaction outcomes.
Our financial due diligence practice provides independent, thorough analysis of target companies' financial performance, position, and projections—delivering insights that support informed decision-making and successful transactions.
Comprehensive Due Diligence Solutions
Buy-Side Financial Due Diligence
Independent financial analysis for acquirers and investors, providing comprehensive assessment of target company financials, risks, and value drivers to support investment decisions.
- Historical financial performance analysis and trends
- Quality of earnings assessment and normalization
- Working capital analysis and net debt calculations
- Financial forecast review and sensitivity analysis
Vendor Due Diligence (VDD)
Seller-commissioned financial due diligence to streamline auction processes, address potential buyer concerns proactively, and support value maximization.
- Vendor due diligence report preparation
- Proactive issue identification and explanation
- Data room preparation and financial disclosure
- Buyer query management and clarifications
Quality of Earnings (QoE) Analysis
Detailed analysis of earnings quality, sustainability, and normalized run-rate profitability, identifying non-recurring items, aggressive accounting, and earnings volatility.
- Revenue and earnings sustainability assessment
- Normalization and adjustment identification
- Accounting policy and treatment review
- EBITDA bridge and reconciliation to cash flow
Working Capital & Net Debt Analysis
Comprehensive analysis of working capital requirements, normalization, and net debt calculations to support purchase price adjustments and deal economics.
- Working capital normalization and target setting
- Cash conversion cycle analysis
- Net debt/cash free calculation and validation
- Locked box vs completion accounts mechanisms
Lender Due Diligence
Financial analysis for lenders evaluating loan applications, assessing borrower creditworthiness, repayment capacity, and covenant compliance projections.
- Historical financial performance and trend analysis
- Debt service coverage and repayment capacity assessment
- Financial forecast reasonableness review
- Covenant compliance projections and headroom analysis
Benefits of Professional Due Diligence
Risk Identification
Uncover financial risks, accounting issues, and operational challenges before they become post-deal surprises.
Value Validation
Independent assessment of earnings quality and sustainability informs valuation and negotiation strategies.
Informed Decisions
Comprehensive financial insights support better investment decisions and deal structuring.
Deal Efficiency
Streamlined processes and clear reporting facilitate faster deal closures with reduced uncertainty.
Why Choose Advisiti
Transaction Experience: Extensive track record across diverse M&A transactions, sectors, and deal sizes in Pakistan and internationally.
Thorough Analysis: We dig deep into financial details, challenging assumptions and uncovering issues others might miss.
Clear Reporting: Practical, accessible reports that highlight key findings and support decision-making without unnecessary complexity.
Responsive Service: Dedicated teams that understand deal timelines and deliver quality work within compressed schedules.
Make Informed Investment Decisions
Access thorough financial diligence to identify risks and validate value drivers.