Financial due diligence is an exercise
carried out on behalf of a prospective bidder in a negotiated
bid in order to confirm the accuracy of the information and
assumptions on which the bid is based.
A due diligence report will provide the bidder
with an independent assessment of the business and will highlight
and quantify areas of commercial and financial risk.
It will also assist finance providers to
identify worthwhile investment opportunities - and highlight
those where caution should be exercised.
A due diligence report will address:
- The dynamics of the business - including critical success
criteria, key performance indicators, industry trends and
any seasonal implications which may affect the business.
- Management issues.
It will also comment on the quality of the
financial and management information, the proposed structure
of the investment and the company's ability to service its
terms.
The financial due diligence process is a
necessity to any transaction and is one in which Grant Thornton
Corporate Finance has a long and established track record.
For further information, please contact
us.
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