Financial due diligence for private equity

What are private equity and venture capital investors looking for when they hire a firm of chartered accountants to perform Financial due diligence? At Consilium, we’re confident that our blend of experience, agility, and commercial focus is the answer.

This page outlines Consilium’s approach to FDD for private equity and venture capital investors, what our FDD reports cover and why we are a trusted partner.

• Our approach to FDD for private equity
• What do our Financial due diligence reports cover?
• Why choose Consilium for FDD?

Specialised FDD reporting for private equity and venture capital investors

Savvy investors don’t want a textbook, by-the-numbers review when it comes to Financial due diligence. They want a team of advisors who can tell the story behind the numbers and raw data.

As experts in FDD for private equity and venture capital investors, our service is hallmarked by:

• A commercial perspective: All our assessments are viewed through a commercial lens, with a natural focus on future returns. Growth assumptions are just that, assumptions. So, we will thoroughly challenge and assess these to determine whether they appear credible and achievable
• Speed and adaptability: Missing out on the deal is not an option. Neither is being unable to pivot in response to new data. Our FDD service comes with speed and adaptability as standard
• Tailored outputs: The outputs of the FDD process will be tailored to the requirements of your deal team or investment committee
• Cross-border experience and scope: Whether your target business is in the UK or overseas, our FDD reports can assess the international aspects of your planned investment.

We also know that investment committees demand clarity on both risks and upside, and our role is to provide exactly that. Our PE-focused FDD typically includes:

• Assessment of finance function: testing whether reporting systems and staff can produce accurate, timely data post-deal
• Validation of key metrics: earnings quality, recurring revenue, margin trends and cost base reliability
• Cash generation analysis: understanding true underlying cash conversion, with a clear analysis of debt service capacity
• Forward-looking perspective: testing projections, assessing growth assumptions, and highlighting red flags that could limit exit value
• SPA-relevant focus areas: working capital, debt-like items and EBITDA adjustments that directly impact valuation and purchase price.

For a confidential discussion about your FDD requirements, please get in touch with our lead Partner Linzi Wilson. Alternatively, read more about our work in Mergers and acquisitions, and our Financial due diligence services.

What do our FDD reports cover?

Our FDD is always bespoke. We start each project with a detailed consultation to agree on a scope that reflects the priorities of your investment committee. Reports are then structured to focus on anything from a review of only a few key areas, right up to a full-scope report that provides granular analysis of every aspect of a business.

Every FDD report by Consilium Chartered Accountants will broadly cover the following:

• A thorough review of the robustness of the target company’s internal financial systems, controls, and governance
• An assessment of the quality of current and projected earnings, and the likelihood of EBITDA being maintained in the medium-to long-term
• Stress-testing of revenue and growth assumptions
• In-depth analysis and insights on cash flow and working capital.

Why choose Consilium for Financial due diligence?

At Consilium, we know and understand what private equity and venture capital investors need in their due diligence partner. We secure repeat engagements because we offer:

• A commercial mindset, not just number-crunching
• Speed and adaptability
• Partners that are hands-on throughout the process
• Candid assessments
• Cost-effective solutions for projects across the UK and internationally, thanks to our membership of AGN International.

To learn more about our FDD services for private equity and venture capital, please contact our lead Partner Linzi Wilson.

Take a look at our track record of providing Financial Due Diligence services. Alternatively, meet the Corporate Finance team at Consilium Chartered Accountants.

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