Managing corporate finance transactions, including buying other companies or stakes there-in can be extremely challenging for any organisation or top management. A thorough knowledge and understanding of the business that is being considered for acquisition or investment can be considered as one of the most important factors in making the right choice.
Some of the key analysis that a due diligence exercise would cover are:
- Analysis of market capitalization of the company (if listed).
- Financial audit analysis of revenue, profit and margin trends
- Competitor analysis
- ROI analysis of the company and its competitors
- Share ownership
- Balance sheet review
- Long and short-term growth plans and business projections
- Risk analysis, both long term and short term
At PKF, we work as your financial due diligence consultants, and focus on analysing key metrices and making sense out of them. More importantly, we focus on identifying the key profit drivers of the company targeted for acquisition. We develop a thorough understanding of macro and micro factors, competition, dependence on customers, products or suppliers, etc. This leads us to bringing out valid and forward-looking recommendations for our clients.