One of the most important parts of the Merger and Acquisition -process is the Due Diligence report, which provides a comprehensive overview of the target company’s business to ensure a successful acquisition and avoid risks.
There are both opportunities and financial risks involved in investing in a business that should be carefully researched before making a transaction. We will assist you through the acquisition process and ensure the success of the acquisition by reviewing the financial information of the target company in a comprehensive due diligence analysis. In addition to the buyer, the analysis can also be performed by the seller, in which case we help the target company prepare itself for the transaction.
Greenstep’s Due Diligence process
Greenstep's experts have extensive knowledge of SMEs and the various roles of financial management, making the due diligence process accurate, agile and efficient. Due diligence is always determined together with the customer in accordance with their objectives and the characteristics of the target company. The process begins with a business inventory, during which we carefully review the target company's business and include key financial figures and information such as balance sheet, cost structure and revenue stream. In addition to current data, we also analyze company forecasts as well as historical data, and interview company management. In this way, we get a comprehensive overview of the financial condition of the target company, on the basis of which we can guide and advise the client further in the acquisition process.
As a result of the due diligence, the customer receives a clear report in which the most important financial figures and possible risks are highlighted. On the basis of the report, we are able to make recommendations as well as proposals for action. The report varies by customer and target company, but often includes, for example:
- Historical financial figures (month, quarter, year) and background to the development of the figures
- Sales and purchase agreements
- Financial statement (balance sheet, cash flow)
- Fitting value
- The input currents
- The cost
- Economic forecast
- Development of forecasts, budget and key indicators
- Sales development
- Tax risk analysis
We always go through the report carefully together with the customer. We validate the most important risks, advise on the necessary measures and carry out further investigations if necessary. We also help the customer after the transaction and, if necessary, act as a project manager to ensure smooth integration. Read more about our Finance Project Manager service.