Financial Due Diligence for a Business Acquisition, Merger or Share Purchase

A Financial Due Diligence aims at conducting an independent financial investigation into a target company on behalf of a purchaser who is interested in an acquisition, or a seller who wishes to consider the business for sale.

R19,950.00 inc. VAT

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Fit For

All South African business acquisitions, mergers or investments
Customised

Yes, customised report based on your specific circumstances
Attorney

An experienced attorney of at least 12 years post qualification

Benefits of having a Financial Due Diligence conducted

  • Helps determine whether a proposed acquisition, investment or merger should proceed
  • Assists in aiding negotiations around acquisitions prices and the like
  • Red flags which are raised can be corrected
Download Sample Report
Download Due Diligence Questionnaire

FAQ's regarding our Financial Due Diligence

Our Financial Due Diligence offering aims at conducting an independent due diligence investigation of a target company on behalf of a purchaser who is interested in an acquisition, or a seller who wishes to consider the business for sale.

The information contained in the report will:

  1. Assess the details of the target company’s existing financial position and performance, as well as its budget and future forecasts;
  2. Verify the accuracy and completeness of the representations and warranties made by the potential sellers of the Target Company;
  3. Identify, understand and quantify potential “deal breakers” and other risks associated with the a business merger or acquisition; and
  4. Allow you to make a well informed decision with regard to the desirability and viability of a business merger or acquisition.

After you checkout, we will request that you send us (to the extent that each apply) the following for our review (we will guide you through the process):

  1. Brief overview of the company, what products and services it sells, how it operates, who are the key people involved, and what are the challenges it faces;
  2. Historical performance: if available, signed audited Financial Statements for the past three years (or a shorter period if the target company has not been in existence for that length of time);
  3. Current position: latest management accounts (including trial balance, fixed asset register, inventory listing, debtors age analysis and creditors age analysis);
  4. Future projections: if available, budget for the current financial year and a forecast for the forthcoming 3 years, with assumptions and supporting workings. These would typically include revenue targets, product and service gross profit margins, fixed overheads, further capex investment requirements, assumptions for the expected annual growth rate of revenue and operating expenses, and industry and competitor trends and considerations;
  5. Banking and loan agreements: for an overall examination and evaluation of the company’s capital structure, short-term and long-term debt obligations, interest rate pricing, assess the company’s ability to service its outstanding debt, and understand the capacity to secure more financing where required;
  6. Other material information: all other information not mentioned above that may be relevant to the company and the industry, such as competitor analysis, industry market share, strategic vision, etc.

This report will include the standard service procedure reviews of the documents and information provided by the client. Should you wish for a more in-depth review of certain financial aspects and/or greater volume of information, this will be quoted for separately based on the scope of work.

We take a maximum of 2 weeks to compile our standard report, once all the required documents and information have been received. Please note that our turnaround time may vary depending on the volume of data to analyse.