Financial due diligence services
We ensure that your investment decisions are backed by clarity, precision, and confidence.
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Financial due diligence services
that empower your decision-making with confidence, clarity, and control
At creditte, we understand the complexities involved in making significant investment decisions. Our financial due diligence services are designed to provide you with a comprehensive understanding of the financial health of the business you are considering. We ensure that your investment decisions are backed by clarity, precision, and confidence.
What is financial due diligence?
Financial due diligence is an indispensable component in your investment and acquisition journey.
The process involves an examination of the business’s financial records, operational outcomes, and business forecasts. A financial due diligence helps identify any financial discrepancies, risks, or opportunities that may not be immediately apparent.
This ensures that you are equipped with all necessary information to make informed decisions, minimising the risks associated with your investment.
Why choose us for your financial due diligence services
Our financial due diligence services
Our service goes beyond mere financial analysis to provide a comprehensive review of the entity’s financial well-being. We explore various financial metrics and aspects to give you a clear picture of what you are investing in.
Our financial due diligence services offer insights into:
Make sound investment decisions with financial due diligence services
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Due diligence checklist
Are you considering buying a business? Ensure you’re fully prepared by conducting essential preliminary research.
Kickstart your evaluation by downloading our complimentary financial due diligence checklist.
Frequently asked questions
What does 'normalised' mean in financial terms?
In financial terms, ‘normalised’ refers to the adjustments made to a company’s financial records to remove the effects of non-recurring, irregular, or one-time events.
What is normalised EBITDA?
Normalised EBITDA stands for earnings before interest, taxes, depreciation, and amortisation, adjusted to exclude non-recurring, irregular, and one-time transactions. This adjustment is made to present a clear picture of the company’s operating profitability, tailored specifically to your understanding. It helps in assessing the sustainable earning capacity of the business without the noise of exceptional items.
How do you assess normalised net working capital?
We assess the company’s operational liquidity by normalising its net working capital. This involves adjusting for unusual items and reflecting the company’s typical working capital needs. By doing this, we aim to provide you with a realistic view of the company’s ability to cover its short-term obligations with its short-term assets.
What does normalised SDE (seller discretionary earnings) mean?
Normalised SDE adjusts the company’s earnings to reflect the true economic benefit to you, the owner. This involves removing personal expenses, non-recurring expenses, and other discretionary items that may not continue under new ownership. It provides a clearer picture of the business’s profitability from the perspective of an owner-operator.
How do you evaluate the feasibility of forecasts?
We critically assess the company’s future financial projections by evaluating the feasibility and reliability of its forecasted revenue, expenses, and growth rates. This involves analysing the assumptions used in the forecasts, comparing them with historical performance and industry standards, and assessing the potential impact of external factors. Our goal is to ensure that you have a realistic and reliable basis for your investment decisions.
What should I consider when buying a business?
When buying a business, it’s crucial to assess the company’s financial health, market position, and growth potential. Conduct thorough financial due diligence to review its financial statements, debts, and legal obligations. Understand the business model, analyse the competitive market, and evaluate the existing customer base and employee skill sets.
How can I buy a business with no money in Australia?
Buying a business with no money in Australia can be challenging but possible through creative financing options. Consider seller financing, where the seller agrees to a payment plan, or look for investors willing to fund the purchase. Leverage buyouts and partnering with a business broker to find opportunities that allow for deferred payment plans are also viable strategies. Always seek legal and financial advice to navigate these options effectively.
What are the key steps in how to buy a business?
Key steps in buying a business include identifying your interests and goals, searching for businesses that match your criteria, conducting initial due diligence, negotiating terms, conducting comprehensive financial due diligence, securing financing if necessary, finalising the sale through legal documentation, and planning for a smooth transition. Each step requires careful consideration and, often, the assistance of professionals.
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