WHAT IS OUR FINANCIAL DUE DILIGENCE SERVICE?
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.
WHAT WILL THE FINANCIAL DUE DILIGENCE REPORT CONTAIN?
The information contained in the report will:
- Assess the details of the target company’s existing financial position and performance, as well as its budget and future forecasts;
- Verify the accuracy and completeness of the representations and warranties made by the potential sellers of the Target Company;
- Identify, understand and quantify potential “deal breakers” and other risks associated with the a business merger or acquisition; and
- Allow you to make a well informed decision with regard to a the desirability and viability of a business merger or acquisition.
LOOKING FOR A LEGAL DUE DILIGENCE, OR WOULD LIKE TO COMBINE A LEGAL AND FINANCIAL DUE DILIGENCE?
WHAT INFORMATION DO WE REQUEST AND REQUIRE FROM YOU?
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):
- 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;
- 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);
- Current position: latest management accounts (including trial balance, fixed asset register, inventory listing, debtors age analysis and creditors age analysis);
- 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;
- 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;
- 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.
WHAT IS THE COST OF THE REPORT?
This report is charged out at our standard fee of ZAR 17,250.00 (Incl. VAT).
We require 50% payment upfront and the remaining 50% when the report is ready to be released. Note that this report will include the standard service procedures review 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.
HOW LONG WILL WE TAKE TO COMPILE THE DUE DILIGENCE REPORT?
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.