Financial Due Diligence Review

Financial due diligence is an aiding tool for buyers and sellers of a corporate transaction as well as for lenders to make informed decisions. Assessment of soundness of current business performance, analysis of prospect of projected financial performance, profiling of risk exposures and identification of key business drivers and potential synergy work as deciding factors for whether to go forward with the transaction and also lays the basis of determination of transaction structure and price. Such due diligence also helps lenders to assess risk of investing and helps them to design their offer with appropriate covenants and collaterals addressing the identified risks.