Financial due diligence

Grant Thornton red flag financial due diligence is designed to rapidly identify potential risks, deal breakers or “red flags”, that could impact success or the valuation of the target.  This includes the analyses relevant to the purchase price of the quality of earnings, net financial position, target working capital and cash flow. You will receive our results either as a commented data book or as a brief report on the main findings. This service is ideal for price-sensitive customers or those who would like to get an efficient overview of the target before undertaking comprehensive financial due diligence. 

Our full-scope financial due diligence provides an extensive analysis of historic and budgeted assets, liabilities, financial position and financial performance as well as of relevant indicators, which we summarise in a report, complemented by an extensive data book. This service is ideal for customers that would like an in-depth analysis of the target before making the decision to invest. Our reports also serve as the basis for the financing decisions of banks and insurers’ approval of transactions.  

Whether selling your business, parts of your business, shares or individual assets – we’ll give you support to prepare for the transaction as well as possible. Take advantage of our professional preparation of your financial data that is in line with the market, whose independent transparency will increase the success of your transaction. Our pragmatic approach allows you to focus on your daily business, while we minimise the time and organisation needed. We provide all the crucial information before the actual transaction.

Our services:

• Exit readiness checks
• Financial fact books
• Vendor due diligence
• Business plan modelling and financial modelling
   

Besides financial due diligence, we provide support in the form of independent business reviews for refinancing, extending existing financing or in the event of breaches of covenant.

Our IBR provides an in-depth status check by precisely preparing the assets, liabilities, financial position and financial performance. We perform a plausibility check on business plans and budgeted restructuring measures, complemented with sensitivity and scenario analyses. We also check capacity to repay lending to create a reliable basis for the decision-making of all stakeholders.

Our transaction data analytics services improve your view of the drivers of revenues, margins and contribution margins or by modelling sales revenue in various revenue models. The knowledge gained will improve the quality of your decisions and offers opportunities for optimisation after the transaction. You will receive this knowledge in the form of visualisations, e.g. in Microsoft Power BI, as well as the source data, which is put together and enhanced in a multi-dimensional data cube.  

On request, we’ll assist you with drafting the purchase agreement with regard to the financial aspects. This focuses on taking current case law into account in the particular features of the transaction, in compliance with the applicable accounting legislation.

On request we’ll support you in your preparation for the purchase price negotiations as part of a transaction. This allows you to take advantage of potential lines of argument that are prepared in advance that will benefit your negotiation strategy.

Business disputes, conflicts among shareholders or differing understandings of the contents of contracts for business transactions can cause a business considerable financial damage as well as long-term loss of the company’s reputation. In these critical situations, Grant Thornton offers comprehensive support with national and international, court and out-of-court disputes.

Take advantage of the way our interdisciplinary teams collaborate efficiently and closely, with their comprehensive assistance on the highest level. Our experts from auditing, tax, legal and advisory have broad experience across industries, technical competence and extensive human resources with which we can support you to resolve your issues as needed. 

On request we can also provide further transaction support services such as a closing accounts review or with the subsequent purchase price allocation.