Financial due diligence is a core component of company transactions and arises from the duty of care of the entrepreneur. It is an essential part of the process that must be addressed when a business owner is assessing whether or not they proceed with a transaction.

By carrying out financial due diligence thoroughly, there is an increased chance of the objectives of the transaction being achieved. In addition, the due diligence process helps to set up and structure the deal and get all parties in the right mindset for the negotiations stage.

At RSM Austria, the key component of our services is the analysis of the asset and financial risks, along with the earnings situation, and of corporate planning. We do this on your behalf, following a financial due diligence checklist, in order to evaluate opportunities and risks better. It is our goal to significantly empower the buyer’s position with the information we obtain by creating and following this checklist.

To effectively safeguard the transaction, it is important that we carry out thorough financial due diligence using only the highest-skilled experts in the field. RSM has access to a global network of professionals across 170 countries. They have the knowledge and expertise to provide guidance through this stage in the transaction.

We tailor this process to meet your needs, talking you through the financial due diligence process and covering the following topics:

  • Analysis of the asset, financial, and earnings
  • Preparation of the adjusted historic performance and cashflow key indicators
  • Analysis of risks, opportunities, and sensitivities in corporate planning
  • Fiscal analysis of the company with the primary target of detecting concealed liabilities and risks
  • Market analysis in regard to market share, segmentation, growth, and competitive situation of the company
  • Development of solutions and strategies for potential deal breakers
  • Identification of unrecorded liabilities and other commitments

This is a stage in the process that is used to identify hidden risks and opportunities, to reduce transaction risk by improving the basis of information, and to strengthen the negotiating position versus the seller.

Therefore, the above is not an exhaustive list and all activity is defined in line with each individual deal, so there may be other situations that arise that fall under the task of financial due diligence.

Contact us

If you would like to speak to our team of specialists about the financial due diligence checklist and what it involves, get in touch with us today. Contact us by phone +43 (1) 505 63 63 or submit your questions, comments, or proposal requests.