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
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