Quality of earnings
Review trading trends, margins, customer concentration and proposed adjustments to understand what supports maintainable earnings.
Financial due diligence before you commit
For buyers, sellers and investors in established businesses. Accendo examines the financial assumptions behind a proposed transaction, so material findings can inform price, funding and negotiations before completion.
Discuss your requirementsTHE CHALLENGE
Headline profit does not tell the whole story.
Earnings may include one-off income, cash may be tied up in overdue debts and forecasts may depend on untested growth assumptions. Discovering these issues late can put both the timetable and the commercial terms under pressure.
HOW Accendo HELPS
Focus the work on what could change the decision.
We agree the transaction questions, scope, timetable and permitted users of the report at the outset. Findings are explained in their commercial context, with information gaps and limitations made clear.
Support shaped around your requirement.
Working capital and net debt
Assess cash conversion, seasonal funding needs and balances that may affect completion adjustments, subject to the deal’s agreed definitions.
Forecasts and financial risks
Challenge material assumptions against the available evidence and identify matters requiring further investigation or separately scoped specialist advice.
GETTING STARTED
A clear scope before work begins.
Tell us whether you are buying, selling or investing, the business involved, the proposed transaction structure and timetable. We agree access to accounts, monthly reporting, forecasts and supporting records. Seller preparation can identify issues before buyer enquiries begin; buy-side work focuses on the purchaser’s agreed questions and risks.
YOUR PARTNER RELATIONSHIP
Direct involvement. Clear responsibilities.
Accendo is a London-based firm of Chartered Certified Accountants supporting organisations across the UK. Asif Rafique, FCA, leads the partner relationship, bringing experience in audit, advisory and strategy across practice and industry.
We agree responsibilities, deliverables and fees before work starts. Engagement acceptance includes conflict and applicable audit independence checks. Management retains responsibility for its decisions and financial information.
Before you decide.
How does this differ from an audit?
Financial due diligence is scoped around a transaction and its financial risks. It does not provide a statutory audit opinion or guarantee that every issue will be identified.
Does the report cover legal and tax due diligence?
Not unless specific tax work is separately agreed. Legal, commercial, operational and specialist tax reviews have distinct scopes. We identify where findings need to be taken to the relevant adviser.
Can our lender rely on the report?
Reliance is agreed expressly in the engagement terms. A report prepared for one client should not be assumed to be available for reliance by a lender or another party.
How long does the work take and what does it cost?
Both depend on the transaction scope, number of entities, quality of information and access to management. We agree the timetable and fee after reviewing those factors and flag information gaps that could delay delivery.
Explore what is relevant to you.
TAKE THE NEXT STEP
Speak to Accendo