Financial & Strategic Advisory

Financial Due Diligence

Know exactly what you're walking into — before you commit.

FDD is an independent, deep-dive examination of an entity's financial health that goes beyond what's on paper — questioning the quality of earnings and uncovering hidden liabilities.

The goal is simple: no surprises after you've signed. FDD challenges the assumptions behind projections and identifies patterns that audited accounts alone won't reveal.

3 years
Financial history
6 areas
Examined
Verified
Source data
Confidential
Delivery

What is FDD?

No surprises after you've signed

FDD goes beyond what's on paper. It questions the quality of earnings, challenges the assumptions behind projections, uncovers hidden liabilities, and identifies patterns that audited accounts alone won't reveal.

Who commissions it

  • Banks and lenders before credit approval
  • Investors before funding a business
  • Acquirers before a merger or acquisition
  • Partners before a joint venture
  • Institutions before a large contract

What you get out of it

  • Verified revenue, margins, and cash flows
  • Clarity on debt levels and repayment ability
  • Identified risks before they become your problem
  • Confidence to negotiate from a position of knowledge
  • A documented basis for your decision

Scope of work

Six areas we examine in depth

Every FDD engagement covers these core areas. The depth of each is calibrated to the size and complexity of the entity.

01

Revenue quality

Is revenue real, recurring, and sustainable? We test for one-off items, related-party income, and recognition inconsistencies.

02

Profitability analysis

EBITDA, PAT, and margin trends over three years — adjusted for non-recurring items to show true operating performance.

03

Balance sheet review

Assets, liabilities, net worth, and working capital — verified for completeness, accuracy, and off-balance-sheet exposure.

04

Cash flow examination

Operating, investing, and financing cash flows — to confirm whether reported profits are actually converting into cash.

05

Debt & capital structure

Total debt, gearing ratios, interest coverage, and the entity's real capacity to service existing and proposed obligations.

06

Compliance & disclosures

Tax filings, statutory dues, audit observations, and any contingent liabilities that could materialise post-transaction.

What We Look For

Red flags we commonly uncover

These are the issues that due diligence exists to find — before they become your liability.

Inflated revenue

Related-party transactions or early recognition masking the true top line.

Hidden liabilities

Contingent obligations, pending litigation, or undisclosed borrowings off the balance sheet.

Weak cash conversion

Profits that look strong on paper but aren't backed by actual cash generation.

Deteriorating liquidity

Current ratio trends and stretched working capital cycles signalling near-term stress.

Compliance gaps

Overdue tax filings, GST discrepancies, or unresolved audit qualifications.

Unsustainable debt load

Gearing levels or debt service ratios that leave little room for any operational setback.

Our Process

How we conduct an FDD engagement

A consistent, four-stage process — thorough at every step, with nothing taken at face value.

01

Scoping and data request

We define the exact scope upfront and request three years of audited financials, tax filings, GST records, loan statements, and management accounts.

02

Independent verification

All figures are cross-checked against source documents and government portals — GST, MCA, and statutory records — not just the entity's own submissions.

03

Analysis and findings

We analyse trends, test assumptions, adjust for non-recurring items, and document every material finding with supporting evidence — positive and negative.

04

Report and observations

A structured, confidential FDD report is delivered — covering key findings, financial summaries, identified risks, and observations to inform your decision.