Due Diligence
Clear, actionable due diligence reports that protect your interests in M&A transactions and PE/VC investments.
What We Cover
- Financial due diligence — P&L quality, working capital, and EBITDA analysis
- Tax due diligence — historical exposure, contingent liabilities, and compliance gaps
- Compliance health check across Companies Act, GST, Income Tax, and FEMA
- Related party transaction review and arms-length assessment
- Debt and liability assessment — secured, unsecured, and contingent
- Working capital normalisation and trend analysis
- Deal structuring and valuation support
- Vendor due diligence report for sellers preparing for exit
Key Deliverables
How We Work
Scope Definition
Define the DD scope covering financial, tax, compliance, and any specific areas of concern. Agree on timeline and deliverables.
Data Room Access
Access the target's data room, request additional documents, and begin preliminary review of financial statements and tax records.
Detailed Analysis
Conduct deep-dive analysis of earnings quality, tax exposures, working capital, contingent liabilities, and compliance gaps.
Report & Discussion
Deliver a comprehensive DD report with executive summary, findings, quantified risks, and recommendations. Present findings to stakeholders.
Is This Service Right for You?
Frequently Asked Questions
What does financial due diligence cover?
Financial due diligence covers quality and sustainability of earnings, working capital analysis, net debt computation, normalised EBITDA adjustments, off-balance-sheet items, related party transactions, contingent liabilities, accounting policy consistency, and capital expenditure analysis. The scope is customised based on the transaction type and buyer's specific concerns.
How is tax due diligence different from a tax audit?
Tax due diligence is a prospective assessment conducted in the context of a transaction to identify potential tax risks and exposures that may affect deal valuation. A tax audit is a retrospective compliance exercise under Section 44AB. Tax DD involves deeper investigation of pending assessments, transfer pricing risks, GST vulnerabilities, and potential demands that may crystallise post-acquisition.
How long does a due diligence engagement take?
A standard financial and tax DD for an SME typically takes 2-4 weeks from data room access to final report. For larger or more complex entities, the timeline may extend to 6-8 weeks. We always provide a clear timeline at the scoping stage and meet committed deadlines, which is critical in transaction contexts.
Can you provide vendor (sell-side) due diligence?
Yes. Vendor DD is increasingly popular as it allows the selling company to identify and address issues before approaching buyers. We prepare a vendor DD report that presents the company's financial position transparently, addresses potential buyer concerns proactively, and often accelerates the transaction timeline by reducing buyer DD cycles.
How do you handle confidentiality during DD?
Confidentiality is paramount. All DD engagements are governed by NDA agreements. We access data through secure virtual data rooms, use encrypted communication, restrict team access on a need-to-know basis, and follow strict information barrier protocols. Our team members are bound by professional confidentiality obligations under ICAI ethical standards.
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