Financial Due Diligence – certainty in every transaction

Every business decision carries risks, especially if it involves mergers, acquisitions, investments or the sale of a company. Financial Due Diligence is a process that allows a company’s financial and operational situation to be thoroughly reviewed in order to minimise risk and make informed decisions. EFEKTA Accounting Office offers comprehensive financial Due Diligence services, ensuring full transparency and security in business transactions.

Financial Due Diligence (FDD) is a detailed financial analysis of a business that aims to:

1. Assess the company’s financial position – review of assets, liabilities, revenue and expenses.
2. Identify the financial risks – detecting potential risks related to debt, unclear accounting records or mismanagement of resources.
3. Verify the financial data – confirmation that the information provided is factually correct.
4. Analyse the cash flows – assessing the company’s ability to generate revenue and manage liquidity.
5. Prepare for negotiations – providing key information to determine the value of the business and the terms of the transaction.

When is it worth using financial Due Diligence?

• Mergers and acquisitions – prior to the acquisition of a company or its merger with another company.
• Selling the business – to reliably assess its value and attract investors.
• Investor entry – verification of financial data to safeguard the interests of both parties.
• Seeking financing – analysis of financial condition in the context of applying for a credit or bond issue.
• Restructuring the company – identifying weaknesses and potential to improve financial management.

What indicators do we analyse during Due Diligence?

During financial Due Diligence, we use key indicators to reliably assess the financial condition of a company:

1. Profitability ratios
   • Return on sales (ROS): an assessment of how much profit a company generates from its revenue.
   • Return on assets (ROA): indicates how efficiently a company uses its assets.
   • Return on equity (ROE): measures the profit generated for owners.
2. Liquidity ratios
   • Current liquidity ratio: assesses a company’s ability to meet its short-term obligations.
   • Quick liquidity ratio: shows whether a company can pay its liabilities without selling inventory.
3. Debt ratios
   • General debt ratio: indicates how much of the assets are financed by external liabilities.
   • Interest cover ratio (ICR): measures a company’s ability to service interest costs.
4. Operational ratios
   • Inventory turnover: assesses how quickly a company sells its products.
   • Receivables turnover: shows the efficiency of collecting payments from clients.

These indicators provide a complete picture of the financial efficiency, liquidity and risks associated with the company, enabling informed decision-making.

EFEKTA – Full support 

Our approach to financial Due Diligence includes detailed analysis in the following areas:

1. Analysis of financial statements
   We review balance sheets, profit and loss accounts, cash flows and all relevant financial documents.
2. Verification of receivables and liabilities
   We check the debt structure, the status of receivables and liabilities and compliance with contractual terms.
3. Business valuation
   We prepare a valuation based on a detailed financial and market analysis.
4. Identification of financial risks
   We identify potential risks that could affect the value or stability of the business.
5. Preparation of the final report
   We create a comprehensive report that includes key data, indicators and recommendations to support you in your negotiations.

Why choose EFEKTA?

1. Expert knowledge and experience
   The EFEKTA team has many years of experience in carrying out Due Diligence for companies in various sectors.
2. Individual approach
   We treat each project individually, tailoring the analysis to the specifics of the company and transaction in question.
3. Comprehensive support
   We offer not only financial analysis, but also consultancy on tax, accounting and potential risks.
4. Complete transparency
   Our reports are transparent and detailed, facilitating informed decision-making.

Your transaction, our support

Business decisions require certainty and precision. Financial Due Diligence with EFEKTA Accounting Office is a guarantee that every transaction will be based on reliable data and a complete analysis of risks.

Contact us today to find out how we can help carry out Due Diligence for your business. Make an appointment for a free consultation and find out that our mission: “Complete Accounting, Complete Peace of Mind”, is the key to your success.

EFEKTA – Confidence in every decision.