Due diligence

When buying a business, you must be sure that are no major hidden problems or risks. Often you will be presented with a sales memorandum by the vendor which will typically present the business for sale in it's best possible light, steering your attention away from any weak areas.

It is vital that preliminary due diligence is completed before you make a firm offer for a business. Once you have agreed an outline price and broad heads of terms for a deal it is even more important that you seek advice to make a thorough examination of the business.

At Ellingsworths we have significant knowledge & experience of the financial due diligence process and our integrated due diligence services includes:

  • Researching the market & the main competitors
  • Meeting the vendor with you to get a feel for the business
  • Perform a preliminary assessment of the key risks for the future trading of the business
  • Review the customer and supplier base and assess the strength of key relationships
  • Analyse and report on historical financial results, identifying scope for improvement
  • Compare vendors financial forecasts with historical figures, critically assessing how achievable they are
  • Review major balance sheet items
  • Conduct and employee audit to assess the skills, knowledge and experience of key members of staff and how they may react to a change of owner
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Ellingsworths Auditors, Accountants, Tax Advisors, Business Advisors
The Willows, Maypole Street, Wombourne, Wolverhampton, West Midlands, WV5 9JB
E: enquiries@ellingsworths.co.uk T: 01902 896 730