Financial Due Diligence
Diligence that finds the issue before it becomes the price.
We test the target the way an experienced buyer would: earnings quality, cash conversion, working capital, debt-like items and tax exposure. You get a clear view of what you are buying and where the negotiation points sit.
Who it is for
Built for the decision in front of you.
- Strategic and individual buyersAcquiring a competitor, a supplier or a first business.
- Search funds and independent sponsorsDiligence scoped to the deal size and the capital at risk.
- Lenders and investorsIndependent support for credit and investment decisions.
What is included
Scope
Adjusted EBITDA, run-rate and sustainability of margins.
Deposits, disbursements and conversion of profit to cash.
Seasonality, normalization and the peg recommendation.
Leases, deferred revenue, accrued bonuses, customer deposits.
Sales tax nexus, payroll, entity and income tax risk areas.
Issues ranked by price impact, with suggested deal protections.
Deliverables
What you receive
Timeline: 3 to 5 weeks.
- Diligence reportFindings ranked by impact on value and terms.
- Data bookSupporting schedules in Excel.
- Deal team callWalkthrough with your attorney, lender or advisor.
Questions
Frequently asked
How is this different from a QoE?
A QoE focuses on earnings. Full financial due diligence adds cash, working capital, debt-like items, tax exposure and a findings memo built for negotiation.
Can you work with our attorney and lender?
Yes. We regularly coordinate with deal counsel, SBA lenders and brokers so findings flow into the purchase agreement and the credit memo.
What do you need from the seller?
Typically three years of financial statements, general ledger detail, bank statements, tax returns, payroll reports and customer and vendor listings. We send a tailored request list on day one.
Related services
Accounting and Bookkeeping
Books, monthly close and reporting that management, lenders and buyers can rely on, on the platforms you already use.
Business and Individual Tax
Individual and business returns, planning, notices and representation across entity types and all 50 states.
CFO Advisory
Senior financial leadership without a full-time seat: forecasting, cash flow, KPIs and board and lender reporting.
Next step
Talk with an advisor about Financial Due Diligence.
Thirty minutes, no obligation. You will leave with a clear view of scope, timing and fee.
- Emailsupport@taxbookscfo.com
- Book a callChoose a time
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