Financial and Tax Due diligence (Buy side and Sell side) services

Financial and Tax Due diligence (Buy side and Sell side) services

Financial and tax due diligence are processes used in mergers and acquisitions (M&A) to thoroughly evaluate a Target company's financial health and tax compliance before finalizing a transaction. These processes help the acquiring company identify any potential risks or liabilities that could affect the value or attractiveness of the deal.

Our Advisory

•    To assess the Target company's financial performance, position, and prospects.
•    To ensure that the financial information provided is accurate and reliable.
•    To identify any financial and tax risks, liabilities, or issues that could impact the transaction.
•    To evaluate the Target company's tax position and compliance.
•    To ensure that the company has been adhering to all relevant tax laws and regulations.

Our key focus

Financial Due diligence

•    Financial Statements Analysis: Reviewing the Balance sheet, Income statement, Cash flow statement to assess the company's financial health.
•    Revenue and Profitability: Evaluating the consistency and sustainability of revenue and profit margins.
•    Quality of Earnings: Analyzing the components of earnings to determine if they are derived from sustainable operations or one-time events.
•    Working Capital: Assessing the management of working capital and identifying any issues with inventory, receivables, or payables.
•    Cash Flow: Reviewing cash flow statements to understand the Target company's liquidity and cash generation capabilities.
•    Debt and Financing: Examining existing debt structures, covenants, and financing arrangements.
•    Assets and Liabilities: Verifying the valuation and existence of assets and liabilities on the Balance sheet.
•    Financial Projections: Evaluating the reasonableness and assumptions behind financial projections and budgets.

Tax Due diligence

•    Tax Compliance: Reviewing tax returns, payments, and filings to ensure compliance with local tax laws.
•    Tax Liabilities: Identifying any outstanding tax liabilities or potential issues that could result in future tax assessments.
•    Tax Audits: Assessing the results of any past tax audits and the likelihood of future audits.
•    Transfer Pricing: Ensuring that transfer pricing policies for transactions between related entities comply with relevant tax laws.
•    Tax Incentives: Reviewing any tax incentives, or exemptions claimed by the company to ensure they are valid.