Financial Due Diligence
Kroll's Financial Due Diligence team provides Quality of Earnings (QoE) and other key financial analyses for buyers, sellers, lenders and investment banks in M&A transactions.
We provide information supported by our rigorous analysis that enables decision makers to take action.
Key Services
- Quality of Earnings (QoE) Analysis
- Validate the target company’s proposed adjustments to EBITDA
Assess one-time, unusual and nonrecurring items that could impact adjusted EBITDA
- Validate the target company’s proposed adjustments to EBITDA
- Working Capital Analysis
- Analyze historical trends in reported working capital and identify adjustments required to determine normalized working capital
- Prepare a projected working capital analysis to calculate a working capital peg
- Net Debt and Debt-like Items – identify items to be considered for inclusion in the definition of Indebtedness in the purchase agreement and other commitments and contingencies
- Carve Out Transactions – assist with standalone analysis and identify potential issues to be considered for a transition service agreement
- Assessment of financial reporting personnel, procedures and accounting systems and policies
- Financial model review/projections
- Data room Support – we assist with gathering QoE adjustment supporting documentation and relevant files to be shared with buyers and other interested parties (primarily on sell-side engagements) to expedite the transaction timeline
Stay Ahead with Kroll
Comprehensive Due Diligence Solutions
Our Comprehensive Due Diligence solutions help clients minimize risks and make the most informed business decisions. We support in the areas of tax, compliance and regulatory, operations/strategy, M&A, financial and accounting, investigations, disputes and cyber/IT risk.
Operational Strategy Advisory
Kroll advises on operational process improvement to increase efficiencies in transaction, expansion and turnaround situations that ultimately increase valuation.
Mergers and Acquisitions Tax Services
Kroll’s M&A tax practice brings deep experience executing thousands of transactions across industry verticals to deliver practical M&A tax solutions in partnership with our clients. Kroll understands M&A is often the cornerstone of value creation, and we tailor customizable and scalable solutions to enhance value across the transaction lifecycle.
IT Transaction Advisory Services
Kroll helps firms identify target’s technology risks, synergies and investment needs to support informed decision making in transactions
Accounting Advisory
Kroll's specialist Accounting Advisory Team combines technical accounting expertise with practical, commercial deal experience to help clients manage the process of accounting and financial reporting for a transformational event.
