Financial due diligence
Our approach to due diligence differs from a "traditional" analysis of a business. By understanding the rationale for your proposed investment, as well as those matters which you have already identified as being of concern to you, we will focus on the issues that are the most important for your investment decision.
We focus our work on identifying risks and opportunities which affect value and impact your negotiating position, quantifying the impact of these issues on valuation and negotiating position and highlighting areas where contractual protection or specific post-deal actions are required
Our analysis usually includes such areas as historical / sustainable / forecast financial performance, financial position, indebtedness, reported or unrecorded contingencies, working capital, fixed assets, quality of the financial information, carve-out adjustments, key financial terms of existing contracts.
Financial due diligence is often accompanied by tax due diligence, legal due diligence, valuation, as well as HR due diligence, IT due diligence and environmental due diligence.
Commercial due diligence
Commercial due diligence, considering the target's relative market position, market conditions and outlook and the target's ability to deliver its forecast results. We tackle the issues at the heart of the business: market conditions and outlook, macroeconomic influences, industry structure, regulatory environment, competitive position and relationship with key customers and suppliers. We consider, in particular, the impact of these factors on the target's ability to deliver its forecast results which form the basis of evaluation of the company. Our integrated approach, which combines commercial, financial and tax due diligence services gives you better understanding of the business.
Vendor due diligence
In a vendor due diligence, KPMG performs a due diligence from the view of a prospective buyer, ordered by the vendor. The results of the vendor due diligence are disclosed to potential buyers, but also provide useful information for the vendor to be prepared best for the sale
Our assistance gives the vendor better control over the sales process, less disruption to the business being sold and reduces overall transaction cost. Vendor due diligence can be especially useful in competitive tender processes and for the disposal to mainly financial investors.