Effective Due Diligence

July 2025

Effective due diligence is critical to transaction success, providing the foundation for informed decision-making, accurate valuation, and post-deal planning. A comprehensive approach uncovers both risks and value creation opportunities.

Due Diligence Fundamentals

Strategic Approach

• Aligning due diligence with transaction objectives
• Risk-based scoping and prioritization
• Integrated workstream coordination
• Findings evaluation framework

Process Management

• Project governance and oversight
• Information request management
• Virtual data room organization
• Findings documentation and reporting

Financial Due Diligence

Quality of Earnings

• Historical financial performance analysis
• Normalized EBITDA calculation
• Non-recurring item identification
• Working capital requirement assessment

Financial Position

• Balance sheet quality review
• Off-balance sheet exposure identification
• Debt and debt-like item analysis
• Capital expenditure requirements

Operational Due Diligence

Operational Assessment

• Production capacity and utilization
• Supply chain resilience evaluation
• Operational efficiency benchmarking
• Cost structure analysis

Technology Evaluation

• IT infrastructure assessment
• Digital capability evaluation
• Cybersecurity risk review
• Technology roadmap alignment

Commercial Due Diligence

Market Assessment

• Market size and growth analysis
• Competitive landscape evaluation
• Customer concentration review
• Sales pipeline validation

Customer Insights

• Customer satisfaction assessment
• Retention and churn analysis
• Contract terms and renewal patterns
• Customer reference interviews

Specialized Due Diligence

Legal Due Diligence

• Contract review and analysis
• Litigation risk assessment
• Intellectual property evaluation
• Regulatory compliance review

ESG Due Diligence

• Environmental risk assessment
• Social impact evaluation
• Governance structure review
• Sustainability strategy alignment

Need expert due diligence support for your next transaction? Contact us for comprehensive due diligence services tailored to your specific transaction objectives.