Financial Due Diligence

Financial due diligence involves analyzing a business’s details and history to confirm its value, typically for a purchase. Unlike audits, it examines earnings quality, future performance, and accounting controls. While buyers can perform due diligence themselves, hiring professionals is highly recommended.

What is Financial Due Diligence for M&A?

For mergers or acquisitions, financial due diligence verifies a seller’s financials and evaluates risks. A team typically:

The process results in a detailed report highlighting risks, adjusted financials, forward-looking projections, and recommendations to guide the buyer’s strategy.

Why is Financial Due Diligence Important?

Due diligence ensures the seller’s financials are accurate and prevents costly surprises. Issues it uncovers may include:

These findings affect valuation and working capital targets, potentially saving buyers significant money.

Why Hire Experts?

For deals over $1M, hiring professionals offers key advantages:

At MET CPA, we leverage our expertise, advanced analytical tools, and thorough due diligence processes to ensure every detail is meticulously examined.