Financial due diligence, an analysis, and review of financial records for integrity and consistency are critical in a variety of circumstances to ensure that financial information presented properly represents the earning power of the company as well as the financial strength of the company as of a particular point in time. Income and expense items are reviewed, and the transaction flows are analyzed, to establish a level of confidence, or lack thereof, in the financial information presented.
Additionally, assets accounts are reviewed to ensure accuracy and completeness, and analyses are performed to understand if liabilities are properly reflected. This type of analysis also encompasses identification of potential problems or irregularities in the financial records which could be misleading as presented. This process can include physical verification of assets, and benchmarking vs. industry norms.
In short, financial due diligence will provide an assessment as to the level of reliance that can be placed on the company financials. Barnes Dennig performs due diligence studies in a variety of circumstances, most commonly in the process of an acquisition, capital raise or succession plan.
If you need expert financial due diligence analysis, contact us. We can provide technical and strategic support to enhance your results.