Financial Due Diligence
At Cradan, financial due diligence is about clarity, focus, and delivering practical, actionable answers. We look beyond headline numbers to provide structured insights that drive confident, informed decision-making.
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Our approach is collaborative and adaptable. We scale our work from rapid health checks to in-depth analysis, depending on the specific needs and context of each deal. Throughout, we integrate our financial findings with other diligence streams, ensuring every insight connects to the bigger picture.
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This joined-up process surfaces risks early, highlights true value drivers, and supports our clients through negotiation and post-deal planning with a clear, comprehensive view.
Financial Health Snapshot
We provide a rapid review of the target’s profit and loss, balance sheet, and supporting statements. This initial scan identifies headline risks, material trends, and any major anomalies. It helps set priorities for deeper analysis and offers an early sense check for deal feasibility.
Net Debt and Working Capital Analysis
Our review focuses on true net debt and working capital trends, going beyond the headline numbers to assess actual liabilities and day-one cash needs. We identify any seasonality, normalisation adjustments, and working capital pinch points, ensuring a clear view of financial obligations at completion.
​Capex and Investment Review
We assess historical and forecast capital expenditure to understand the company’s ongoing investment requirements. The analysis covers how capex aligns with depreciation, maintenance, and growth plans, helping you plan for future needs and spot any underinvestment or overstatement.
Quality of Earnings Analysis
We carry out a detailed examination of the company’s earnings, identifying non-recurring or exceptional items, and recalculating underlying profitability. This process ensures the reported EBITDA is genuinely reflective of the business’s ongoing performance and highlights any adjustments relevant to valuation.
Cash Flow Assessment
We analyse the business’s cash flow generation, tracking how EBITDA converts to cash and evaluating management of inflows and outflows. This assessment highlights consistency, any red flags in cash management, and potential vulnerabilities, supporting a robust understanding of liquidity.
Financial Forecasts and Sensitivity Analysis
We evaluate management’s financial projections, testing the credibility of underlying assumptions and modelling sensitivities to key risks. This approach reveals pressure points and provides a robust basis for negotiation, valuation, and integration planning.