When Do You Need Financial Due Diligence?
Company Acquisition or Stake Purchase
Financial due diligence helps assess earnings quality, cash flow, debt, and Zakat and tax positions reflected in the information made available.
Entering a Business Partnership
Due diligence provides an independent reading of available financial information and helps identify matters requiring clarification before agreement.
Investment Transactions
Investors may request financial due diligence before completing a transaction. Scope and outputs are defined around user needs and available information.
Restructuring or Merger
Due diligence supports understanding of financial positions and transaction assumptions; it does not replace a separately scoped financial analysis where one is needed.
What Financial Due Diligence Covers
Financial Information Analysis
Analysis of financial statements for the agreed period, including revenue and profit trends, earnings quality, and the relationship between results and cash flow.
We explain exceptions, adjustments, and assumptions affecting the financial view, within the limits of information made available for review.
Zakat and Tax Position Review
Review of returns, correspondence, and open positions made available in the data room, identifying matters requiring clarification or specialist advice.
Transaction effects depend on structure, facts, and applicable law; observations are presented with their limitations and do not replace legal advice.
Assets and Liabilities Analysis
Review of available records, reconciliations, and documents for assets, liabilities, and potential exposures, under agreed scope and procedures.
Legal matters such as claims and guarantees are coordinated with the relevant adviser when needed; conclusions are presented within the limits of information made available for review.
Working Capital Analysis
Analysis of collection, payment, and inventory cycles, assessing working-capital trends and potential adjustments using available period data.
An estimated normalised working-capital range may be presented from data and assumptions; actual needs remain dependent on subsequent performance and operating conditions.