FOR UK ACQUIRERS · MANAGEMENT TEAMS · INVESTORS
Buy-side financial due diligence services
Know what you are
really buying.
The headline profit is only the starting point. We help business buyers understand sustainable earnings, cash requirements and financial risks before they commit to an acquisition.
Partner-led support · London & across the UK
CLARITY BEFORE COMMITMENT
Better evidence.
Better decisions.
Buy-side financial due diligence is a buyer-commissioned review of a target company’s financial information. It examines earnings, cash flow, working capital and financial risks to inform an acquisition decision, valuation and transaction negotiations.
For UK SME acquirers, management buyout teams, search funds and investors assessing a business purchase. The review is tailored to the target, transaction structure, information available and the decisions you need to make.
WHAT’S INCLUDED
Understand the business.
Challenge the price.
Choose a defined project or discuss ongoing CFO support. Your proposal sets out exactly what is included, what is excluded and what you receive.
Quality of earnings
Assess the sustainability of reported profit, including one-off income, exceptional costs, owner remuneration and accounting judgements.
Revenue and margin analysis
Examine revenue composition, customer concentration, recurring income and margin trends. Identify where performance relies on particular customers or assumptions.
Working capital and cash conversion
Analyse debtors, creditors, inventory, seasonality and the relationship between profit and cash. Assess the target’s ongoing funding needs.
Net debt and debt-like items
Review borrowings, cash and potential debt-like exposures. Highlight items that may affect the bridge between enterprise value and equity value.
Forecasts and downside scenarios
Challenge forecast assumptions against historical performance, trading evidence and funding requirements. Make the key sensitivities visible.
Decision and negotiation support
Translate findings into practical questions, further work and financial negotiation points. Coordinate financial issues with your legal and other advisers.
START WITH THE RIGHT QUESTION
Match the review to your decision.
Choose the question closest to your situation. Final scope and timing are agreed after an initial discussion.
Prioritise headline earnings, cash conversion, concentration and major information gaps. A limited red-flag review is narrower than full financial due diligence.
Agree a financial review covering earnings, working capital, net debt and forecasts, with a clear information request and findings discussion.
Focus on maintainable earnings, funding capacity and downside headroom, alongside the financial risks and assumptions relevant to the buyout.
Discuss an appropriate scope ↗HOW WE WORK
From first conversation
to a clear next move.
- 01
Define the decision
Agree the target, transaction stage, access to information and intended use of the report.
- 02
Request and analyse
Review the financial records, test key reconciliations and raise questions with management.
- 03
Surface the findings
Discuss material issues as they emerge and distinguish evidence from unresolved questions.
- 04
Support your next move
Deliver the agreed report and explain the implications for price, funding and further diligence.
EXPERIENCE BEHIND THE ANALYSIS
Work directly with
Kishen Patel ACA.
Corporate finance experience, applied to the decision in front of you.
Kish’s background spans Big Four audit, investment banking and corporate advisory. He founded Consult EFC to bring strategic financial support to ambitious UK businesses.
Your engagement begins with the question you need answered, not a generic checklist. We agree the scope, explain the assumptions and make the findings usable.
Book a free strategy call ↗YOUR QUESTIONS, ANSWERED
Before we
get started.
Need a more specific answer?
Tell us about your situation.
What is the difference between buy-side and vendor due diligence?
Buy-side financial due diligence is commissioned by the buyer to support its acquisition decision. Vendor due diligence is commissioned by the seller before or during a sale process. Buyers should still consider whether additional work is needed for their specific transaction.
Is financial due diligence the same as an audit?
No. An audit and an acquisition-focused financial review have different purposes and scopes. Financial due diligence addresses transaction questions and does not provide an audit opinion or guarantee that every issue will be identified.
What documents will you need?
Requests commonly cover management accounts, statutory accounts, forecasts, bank and debt information, customer revenue data, debtor and creditor ageing, inventory and relevant financial schedules. The list is tailored to the target and agreed scope.
Can you provide a limited red-flag review?
A focused review can be scoped where an early decision is needed. Its limitations must be clear: a narrower review is not a substitute for full financial due diligence and may leave important areas unexamined.
How long does buy-side due diligence take?
Timing depends on scope, target complexity, record quality, management availability and transaction deadlines. We agree a realistic timetable after scoping and keep you informed if missing information affects delivery.
How much does a review cost?
Fees depend on the target, depth of review, data quality and timetable. We agree the scope, exclusions, deliverables and fee before work begins rather than quote a generic price without understanding the transaction.
Does the service include legal, tax or commercial due diligence?
Not unless specifically agreed within a separate appropriate scope. Financial due diligence should be coordinated with legal, tax, commercial, operational and other specialist reviews where needed.
Can a lender or another party rely on the report?
The intended recipients and reliance arrangements are established in the engagement terms. A report should not be assumed to be suitable for a lender or other third party without an express agreement.
LET’S TALK THROUGH THE NUMBERS
Tell us about the acquisition.
Outline the target, deal stage and timing without disclosing confidential documents. We can agree the right next conversation.
Scope, exclusions, intended recipients and reliance are agreed in writing. A financial review does not replace legal, tax or other specialist due diligence.