Financial Due Diligence

Financial Due Diligence (DD), — also known as accounting Due Diligence, — is the clearest step in a business sale and purchase transaction. After all, a company that is wishing to acquire or merge with another business entity needs a clear understanding of the financial position of the target company.

Financial Due Diligence is a complex due diligence of a business carried out by a potential buyer, in particular, to determine assets and liabilities, as well as to assess the economic potential of the target company.

Read more about Due Diligence types of services provided by BDO in Ukraine

Experts of BDO in Ukraine offer Financial Due Diligence services both from a buyer's side and from a seller's side ( Vendor Due Diligence ).

The basic blocks of verification during Financial Due Diligence from BDO in Ukraine
 

- General assessment of the quality of accounting
- Analysis of the revenue, including recognition method, structure and dynamics
- Analysis of the expenditures, including structure, dynamics, identification of atypical items of expenditure
- Non-current assets:

• analysis of structure, degree of depreciation
• identification of objects not related to the main activity
• comments on restrictions on use (pledges, arrests, etc)
• identification of impaired assets

- Current assets:

• analysis of structure and dynamics
• identification of illiquid current assets, overdue receivables, fictitious and/or impaired financial investments

- Debts and liabilities:

• identification of off-balance sheet liabilities
• analysis of the structure and dynamics of debts
• identification of overdue payables and special conditions for the settlement of outstanding debt

- Analysis of contingencies (guarantee bonds issued to secure third-party debts, potential fines, etc)
- Analysis of events after the reporting date
- Additional blocks agreed with the customer

Experts of BDO in Ukraine have extensive experience in providing general, financial, tax, legal and Vendor Due Diligence services. We offer high-quality advisory services on all financial issues that will save you time and also help you to avoid risks. In the end, we create a solid footing for successful negotiation and closing of a deal.
 

To order a consultation and clarify the cost of Financial Due Diligence service for your business, please contact experts of BDO in Ukraine.