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Financial Due Diligence

Financial Due Diligence

Regular price
R 3,500.00
Regular price
Sale price
R 3,500.00
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Tax included.

The objective is to assist clients who want to invest in or buy a business to obtain an objective and professional assessment of the past, present and future financial health and value of the business being targeted. The focus areas for a financial due diligence are closely dependent upon the type of business targeted, the industry they operate in and the transaction. The client will get,

  • An independent view of the nature of the business, and the risks and characteristics of the cashflows of the business.
  • An assessment of the facts, figures and other information provided by the management of the business.
  • A better understanding of the transaction and risks involved and therefore reduced uncertainty.
  • A valuation of the business.

The service comprises two products/offerings

  1. Desktop Due Diligence โ€“ R 3,500

This involves a high level analysis of at least 3 yearsโ€™ audited Annual Financial Statements, the most recent management accounts and management forecasts and assumptions.

The output is a report that highlights high level strengths and weaknesses in the historical and present performance of the business, and an assessment of the future performance potential and implied valuation of the business.

  1. Detailed Financial Due Diligence โ€“ R 30,000 / R 60,000

This involves a more in depth analysis of the key records of the business to produce a more detailed report than that produced by the desktop assessment. The analysis performed is more robust and detailed and focuses on the following key areas,

  • Business background - history, key products and services offered.
  • Key customers, suppliers and management.
  • Income statement/trading performance
  • Balance sheet/financial position
  • Cashflows and cash conversion
  • Tax
  • Capital and Operating budgets
  • Regulatory compliance
  • Financial projections
  • Corporate structure
  • Other key items โ€“ e.g. accounting policies, off balance sheet items, undisclosed liabilities, material commitments, litigation and contingent liabilities