Finance Consulting · Govern
We perform financial due diligence that tests the quality of a target's earnings and the numbers the deal is being priced on, rather than taking the information memorandum at face value. The work examines reported earnings for one-off and accounting-driven items, analyses revenue and margin by customer and product, and identifies debt-like items sitting outside reported debt. Crucially, we state clearly what was tested, what was not, and what could not be verified from the information provided. It matters because the findings that most often change price and structure are rarely the ones highlighted by the seller.
In short
Financial due diligence tests the quality of a target's earnings, cash flow, working capital and reported position. It is investigative work scoped to a deal, not an audit, and it offers no audit opinion.
Start a conversationWhat we do
We test reported earnings for one-off, non-recurring and accounting-driven items to establish the sustainable base a buyer is really acquiring. Reported profit and maintainable profit are frequently different numbers. Separating them is the single most important output of diligence and the one that most often moves the price.
We analyse revenue by customer, product and cohort, and test whether current margins are sustainable. Customer concentration and a reliance on a handful of recent wins change the risk profile of a deal materially. Understanding where revenue comes from, and how durable it is, matters as much as its headline growth rate.
We analyse the working capital cycle and identify the debt-like items that sit outside reported debt. Seasonality in working capital and liabilities dressed as something else routinely change completion consideration. These are among the findings most likely to reopen price once they surface, so we surface them before signing.
We test the forecast against the target's historical delivery and the assumptions it depends on. A projection that bears no relation to past performance is a warning rather than a plan. Assessing it on the evidence lets the buyer price the forecast rather than simply inherit it.
What you receive
Documented output your teams keep and can act on without us in the room.
When this work helps
How an engagement runs
Understand the decision, the financial context, and how finance currently operates. We establish exactly what question the engagement must answer, so a business-case review and a process redesign are not confused with one another.
Review the case, processes, controls, and reporting against what the organisation needs to rely on. We report where the numbers and processes are dependable and where they rest on assumptions that will not hold under pressure.
Set out the financial approach, process design, control set, and reporting model. Definitions, ownership, and controls are documented so the improvement does not depend on us remaining involved.
Support implementation, then track cost and benefit against what was approved. We measure realised value against the criteria agreed at the outset, so the decision is held to account rather than forgotten.
Where we work
Fidova provides finance consulting from Delhi, India, and works with organisations internationally, including group structures with entities, currencies, and reporting obligations in more than one country.
Engagements run in English, are scheduled around your time zone, and can be delivered remotely end to end, with on-site time planned where a phase genuinely benefits from being in the room.
Related services
Investment advisory appraises capital investment proposals so funding decisions rest on tested analysis rather than sponsor enthusiasm. This is corporate investment appraisal for businesses, not regulated investment advice to investors.
Capital raising advisory prepares a business and its information for equity or debt investors. We prepare and support; we are not a placement agent and take no introduction or success fees.
Debt advisory addresses borrowing structure, terms, covenants and lender relationships. The terms agreed before signing shape the flexibility the business has for years afterwards.
Questions
Straight answers to what buyers ask us before an engagement begins.
Enquiries
Your enquiry lands in the same inbox as every other on this site and is read by us. Tell us the requirement and we will reply with a practical next step.
Prefer email? contact@fidovaadvisory.com
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