Financial Due Diligence

Why Financial Due Diligence Matters

We simplify the financial due diligence process by ensuring your records are accurate, compliant, and ready for buyout transactions. Our meticulous approach provides the clarity and confidence you need for successful negotiations.

Our due diligence services include:

• Building detailed financial data and metrics to present to potential buyers.

• Identifying and analysing trends to showcase business performance.

• Preparing financial forecasts and projections to support valuation discussions.

• Creating clear, actionable reports highlighting key financial insights.

By delivering well-structured and insightful financial information, we help sellers position their business effectively and maximise buyer confidence in the transaction.

Who Are Think Moso?

We are a team of ACA chartered accountants, with a background in external audit, M&A and consulting at Big Four firms. With over 20+ years of extensive experience in financial reporting and financial due diligence.

Our background gives us a meticulous eye for detail and a unique perspective to provide a thorough review of your company’s financial health, ensuring that potential buyers have confidence in the value of your business. It also helps avoid surprises that could derail negotiations or reduce your sale price.

10+

Experience spanning 10+ industries, including SaaS, automotive, and hospitality.

£100k - £5m

Specialists in financial due diligence of sales priced up to £5m

Financial Due Diligence:

What Buyers Look For?

What Buyers Look For During Financial Due Diligence

Buyers will scrutinise every aspect of your company’s financial performance and structure. Here are the key areas they will evaluate:

1. Historical Financial Statements

2. Tax Records

3. Debt and Liabilities

4. Accounts Receivable and Payable

5. Working Capital Analysis

6. Projections and Forecasts

7. Key Financial Ratios

8. Fraud Detection

How to Prepare for Financial Due Diligence

To ensure a seamless process:

1. Organize Your Financial Records
   Gather all relevant documents early.

2. Address Potential Red Flags
   Proactively resolve issues.

3. Engage Experts Early
   Work with accountants, tax advisors, and legal professionals.

4. Update Contracts & Agreements
   Ensure all contracts with suppliers, customers, employees, and lenders are up-to-date and legally sound.

5. Highlight Value Drivers
   Showcase underutilised assets or unique strengths that could increase your company’s valuation.

Common Mistakes to Avoid

• Insufficient Preparation: Scrambling for documents can lead to delays or errors that may harm buyer confidence.
  

• Withholding Information: Transparency is key; undisclosed issues will likely be discovered during due diligence.
  

• Neglecting Non-Financial Aspects: While financials are critical, buyers will also examine legal compliance, intellectual property rights, employee contracts, environmental issues, etc.
  

• Making Major Changes: Avoid significant operational changes during the sales process that could disrupt financial stability or raise concerns among buyers

How We Can Help

Our team specialises in helping business owners prepare for financial due diligence by:

• Conducting pre-sale audits to identify potential issues.

• Organising your financial data into an easy-to-navigate format for buyers.

• Providing expert advice on improving transparency and maximizing your business's value.
  
  

Let us guide you through this critical stage to ensure a successful sale at the best possible price.

Schedule A Free Consultation

Send Us A Message