Financial due diligence services
If your business is considering buying, investing in, or merging with another company, it’s important to carry out thorough financial due diligence.
Financial due diligence involves a detailed review of a company’s financial statements and metrics. This allows you to assess its financial health and identify potential risks or opportunities.
Getting financial due diligence right brings you many benefits, such as giving you the information you need to negotiate a better deal. Getting it wrong can be disastrous. Not only could you end up overpaying, but you could also inherit undetected financial problems, fraud or financial mismanagement.
Minimise risk with THP’s financial due diligence services
Only the largest companies have in-house due diligence experts.
If yours doesn’t, it’s essential to work with external due diligence specialists, such as THP Chartered Accountants.
We will work with you to tailor our approach to your specific needs, leading to detailed data collection that includes:
- A comprehensive financial review. We’ll analyse documents such as balance sheets, profit and loss statements and cash flow statements to better understand the company’s profitability, liquidity, stability and performance. We’ll also check financial reports for accuracy and consistency and check for any red flags within the numbers.
- A debt and liability evaluation. We’ll delve into the company’s debts and liabilities, contingent liabilities, debt agreements and covenants to identify any financial risks.
- A site visit and interviews. If necessary, we will visit the company to interview key personnel and get further insights into financial operations. We can also talk to customers and suppliers to build a fuller picture.
Once we have gathered and analysed all relevant data, we’ll prepare a comprehensive report that clearly sets out our findings and recommendations. We can also provide you with ongoing support to put our recommendations into action and manage any risks we’ve identified.
Book a meeting with Ian
to discuss your Due Diligence requirements
Meet the THP Financial Due Diligence Team
We’re here to help!
Kirsty Demeza
"I believe in our service, and I know clients feel strongly that we’re worth it"
Andy Green
"We are honest, telling clients what they need to hear, being creative & innovative, we challenge our clients"
Shahid Hameed
"Our actions decide our future. There's a bright and prosperous future for our clients!"
Miles Girdlestone
"My commitment to my clients goes beyond numbers; I am dedicated to building long-lasting relationships based on trust, understanding, and mutual success"
Lee Daley
"When clients call you by your nickname, you know you’re providing a personal approach”
Kate Brasser
"We have the in-house resources to service larger clients, whilst maintaining a personal approach"
Mark Ingle
"There's something really satisfying about helping a client go beyond just an annual tax return.”
Ian Henman
“We work hard to understand our client’s underlying interests, not just their surface ‘wants’, to earn their respect as a trusted advisor”
Frequently Asked Questions
Financial due diligence refers to when you undertake a detailed review of a company’s financial data to assess its financial health, stability and viability. It’s a vital step to minimise risk before buying, investing in or merging with a company.
There are many benefits to undertaking financial due diligence. These include:
- Not inheriting financial problems. Due diligence can uncover undiscovered debts and liabilities, cash flow issues and hidden financial weaknesses. It can also identify overestimated earnings.
- Not inheriting legal problems. If due diligence uncovers fraud or financial mismanagement, you can walk away from the deal with your reputation intact.
- Not overpaying for a business. With a detailed insight into a business’s financials, you can negotiate a better price.
- Safeguarding your investment. If you don’t undertake due diligence, there’s a greater chance of investing in a financially unstable company, leading to major losses or even bankruptcy.
The time it takes our accountants to undertake financial due diligence varies depending on the complexity and scope of the project and the time it takes to obtain all the necessary documents to review. Our efficient due diligence team will always do their utmost to carry out the review to your timescales.
Yes, we provide ongoing support to help you implement recommendations and manage any risks identified during the due diligence process.
