Financial Due Diligence and Modeling Consultancy

The detailed investigation analysis in the company acquisition and sale process identifies the financial and operational performance, risks, and potential findings that could obstruct the agreement of the target company. This process, which primarily involves the examination of the following elements, is supported by IQ Audit’s expert consultant staff in the sector:

• Foundations of Financial Statements Preparation: Reconciliation studies of statements prepared according to different principles (legal, management, IFRS accounts, etc.)
• Key Elements Affecting Sales, Cost Accounts, and Operating Expenses: and their impacts on Gross Profit, EBITDA, and Net Profit Margins.

During the valuation stage:

• Core Profitability Analysis: To demonstrate the sustainable profitability of the target company.
• Core Working Capital Analysis: Examining the company’s net working capital requirement, cash conversion cycle, and seasonality.

Also considered during the valuation stage:

• Core Indebtedness Analysis: Identification of on-balance and off-balance sheet debt and debt-like balances.

• Investment Expenditures Analysis: According to their contents (for growth or maintenance-repair purposes).

• Related Company Transactions: and their potential post-sale effects on Core Profitability.

• Business Plan Preparation or Review.

• Sales Process Support and Data Set Preparation: Preparation of data sets for seller-side companies subject to merger or acquisition to facilitate an effective data procurement process.

• Data Room Preparation Support: Control, monitoring, and uploading of procured data to the data room; and tracking of buyer-side questions.

This comprehensive consultancy service ensures that during the acquisition or sale, stakeholders have a clear understanding of the financial health and risks associated with the target company, enabling more informed decision-making and strategic planning.