Quality of earnings
We assess recurrence, margins, normalisations and the main drivers of performance.
All services
Critical information before investing or acquiring
Financial Due Diligence
We support buyers, investors and shareholders in the financial review of businesses and assets, turning accounting and operating information into conclusions that inform decisions, valuation and negotiation.
Discuss a transactionOur perspective
Effective due diligence does more than validate figures. It identifies the issues that may change transaction value, structure and terms.
The challenge
Decision-makers need to distinguish reported performance from sustainable performance.
Historical accounts rarely tell the full story. Non-recurring results, accounting policies, customer concentration, working capital requirements, commitments and debt can materially change the economic picture of a business.
Fenix Capital Partners focuses the analysis on matters affecting price, net debt, adjustment mechanisms, contractual protections and the integration plan, communicating conclusions clearly to decision-makers and other advisers.
Debt and working capital
We review financial positions, debt-like items and normal operating requirements.
Transaction impact
We translate identified matters into implications for value, structure, contractual protection and negotiation.
How we can help
From initial assessment to completion.
- ✓Buy-side or sell-side financial due diligence
- ✓Quality of earnings and normalised EBITDA
- ✓Net debt and working capital analysis
- ✓Business plan and forecast review
- ✓Financial support for negotiation and transaction documents
Our process
A structured approach with direct involvement.
Scope
We define the critical questions, perimeter, materiality and information needed for the decision.
Analysis
We test earnings, balance sheet, cash flow, debt, working capital and forecasts.
Conclusions
We prioritise risks and opportunities and support their translation into value and transaction terms.
Mandate and deliverables
Practical work to move the decision forward.
The scope is tailored to the transaction, the stage of the process and the needs of management or shareholders.
- 01
Quality of earnings analysis and EBITDA normalisations
- 02
Review of net debt, debt-like items and commitments
- 03
Working capital and seasonality analysis
- 04
Review of forecasts, cash flow and key sensitivities
- 05
Executive report with conclusions, risks and negotiation matters
When to talk to us
Where we add value.
Preparing to decide
Answers to help you move forward with clarity.
What is financial due diligence?
It is a decision-focused review of earnings quality, the financial position, risks and matters that may affect transaction value or terms. The work is tailored to the decision and does not necessarily constitute a statutory audit or assurance engagement.
What is the difference between buy-side and sell-side due diligence?
Buy-side work supports a potential buyer or investor in assessing the target and negotiating the transaction. Sell-side work prepares the seller, identifies critical matters in advance and develops a consistent financial basis for the sale process.
Which matters may change the price of a business?
EBITDA normalisations, net debt, debt-like items, normal working capital, off-balance-sheet commitments and forecast quality may affect price or the adjustment mechanism. The significance of each matter depends on the agreed transaction structure.