Financial Due Diligence: An Overview

Finance due diligence is used to better understand and examine a target company’s financials, including identifying and assessing the financial condition, revealing unrecorded liabilities, and estimating future earnings.

It should not be confused with an audit, which merely seeks to determine whether the company’s past financial statements accurately reflect its operations.

Due diligence gives the buyer a confidence that their expectations for the purchase is accurate.  When it comes to a seller, it is beneficial to get a detailed financial examination may reveal that the seller’s company’s fair market value is higher than previously estimated.

A due diligence procedure is necessary to identify administration and ownership, capitalization, company competitors and industries, balance sheet review, revenue, profit and margin bearings, risks, capital history, and expectations.

The key sources of information for performing financial due diligence are financial facts from the past, financial statistics as of now, Information on financial projections including business plans, budgets and cash flow forecasts.

Independent external accountants with experience will normally do the financial due diligence evaluation. As the leading Management Consultant we, VBV & Associates offers quality Due Diligence Service in Kochi, Kerala.

Our due diligence team will conduct a complete analysis and assessment which assists buyers and sellers in accurately understanding the financial position of the firm.