Any organisation considering a deal needs to check all the assumptions it is making about that deal. Financial due diligence provides peace of mind to both corporate and financial buyers, by analysing and validating all the financial, commercial, operational and strategic assumptions being made. It uses past trading experience to form a view of the future and confirms that there are no 'black holes'.
For the buyer we carry out a financial, commercial, and market due diligence, that is, we investigate the correctness of financial, operative, and strategic information, the target company’s business plan, industry status and competitive situation, as well as market conditions and prospects.
A financial due diligence helps the company develop their strategy and find the reasons behind poor results. This lays the groundwork for development plans and for valuing new markets and possible acquisition targets. Our investigations also help financing institutions evaluate whether business plans are viable to be carried out.
In addition to due diligences, we investigate whether functions have synergy. We also determine the continuing profitability level, future cash flows, and all other operative factors. In addition, we plan the structure of the transaction.
Based on our investigation you get a clear overview of acquisition target company. You are able to find the most important success factors and make a well-though-out decision based on information instead of beliefs. This improves the chances of reaching the goals set for corporate transactions.
Ilkka Simula
Partner, Transaction Services Leader & Private Equity Leader, PwC Finland
Tel: +358 (0)20 787 8522