Business Acquisition and Due Diligence
Buy the business behind the sales pitch.
Understand the financial information behind a potential acquisition and identify the questions that need answering before you commit.
Discuss a potential acquisition01 / Why it matters
A good headline profit deserves a closer look.
The headline figures are a starting point. You also need to understand how the business earns its income, what supports its performance and which assumptions sit behind the opportunity.
We help you examine the available financial information and consider how the proposed purchase relates to your plans.
02 / How we can help
What we look at together.
Financial information review
Examine the accounts and supporting information made available in the review.
Performance analysis
Consider the drivers of revenue, costs and reported profitability, including matters that warrant further explanation.
Cashflow considerations
Explore the business’s cash requirements and what ownership could mean for your wider financial commitments.
Questions for the seller
Identify missing information, inconsistencies or assumptions that need to be clarified.
Acquisition planning
Discuss relevant accounting, structure and tax considerations alongside the findings of the review.
03 / Our approach
Define the questions before starting the review.
We’ll discuss the opportunity, your proposed timeline and the information available. From there, we’ll agree on the scope and the areas requiring attention.
The work provides financial insight for your decision. Legal, operational and other specialist due diligence may also be needed, depending on the transaction. The findings should be considered together before you proceed.
04 / Common questions
Questions we often hear.
When should I involve an accountant?
Early in the process, before making binding commitments where possible. This gives you time to understand the information needed and coordinate the relevant advice.
Does due diligence guarantee a successful purchase?
No. It helps you investigate the information available and identify issues in the review. Commercial judgement and uncertainty remain part of any acquisition.
05 / Before you buy
Five questions to take into your first review.
- What explains the reported profit?
Ask about unusual income, one-off costs and expenses that may change under new ownership.
- How does profit turn into cash?
Look at customer payment patterns, stock requirements and the cash needed to keep trading.
- How much does the business depend on its owner?
Consider the relationships, knowledge and responsibilities that would need to transfer.
- What commitments will continue after the purchase?
Identify obligations that need financial and legal review, rather than assuming they are reflected in the headline price.
- What information is missing?
An unanswered question is a reason to investigate. It isn’t evidence that the answer will be favourable.
Your next chapter
Know which questions to ask next.
Tell us about the business you’re considering and where you are in the process.
Tell us what’s on your mind