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Financial Due Diligence Service

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Overview of Financial Due Diligence Service

Buying and selling businesses, and assets, or even investing in large projects can be risky. Objective due diligence can help mitigate these risks while also highlighting opportunities to add value and close a transaction.

Furthermore, when deciding whether to proceed with a transaction, financial due diligence is critical and can increase the likelihood of the transaction achieving its goals. The due diligence process will also assist you in structuring the transaction and preparing for negotiations.

The Startup Gig service includes financial, tax, and broader analysis to identify both the risks and opportunities of a potential transaction, allowing you to make better decisions and negotiate better outcomes.

financial due diligence<br />

Why choose The Startup Gig For Financial Due Diligence

Making the process easy

Financial due diligence is a critical step for most businesses, as their growth sees them engage actively in mergers and acquisitions (M&A). No deal goes through without adequate due diligence, and financial due diligence is often the most time-consuming part of the process. 

At TSG we handhold startups to conduct the entire FDD.  The scope of the FDD exercise differs based on the industry, scale of business and size of the company.

Analyzing the revenue model

We analyze revenue generation model and assess the quality of earnings, cash flows and margins. We further evaluate sustainability of revenue considering factors such as taxes, interest, depreciation, working capital, financial debts and liabilities. Report creates a detailed report based on an evaluation of other critical variables that may have an impact on the business. 

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    What makes financial due diligence necessary?

    • Financial due diligence can help resolve issues that might arise later on during the transaction in advance.
    • When both parties are aware of each other’s financial situations, an informed choice or negotiation can be made.
    • The use of deliverables can be flexible because of financial due diligence.
    • Both parties benefit from a third party’s objective assessment, which helps to build trust.
    • It is possible to determine the entity’s potential future position, which will be a key deciding factor for both entities.

    Types of Financial Due Diligence

    There are generally two types of Financial due diligence. One of the buy side Financial Due diligence and the sell side due diligence.

    • Buy-Side Due Diligence

    The person who completes the financial due diligence is the business buyer or acquirer who intends to buy the target business in question. A family office, sovereign wealth fund, venture capitalist, strategic investor, investment bank, pension fund, insurance company, etc. are all examples of potential buyers. The financial health of the target company is the main subject of the buy-side FDD. Data on the company’s revenue, expenses, cash flow, balance sheet, debtors, creditors, profitability, growth rate, market share, etc. must be gathered. To fully understand the target’s financial situation, a buyer looking to buy a company or a start-up business would carry out buy-side financial due diligence. In a perfect world, the acquirer’s interests would be met and the target company’s financial position would be established as strong, stable, and with a bright future.

    • Sell-Side Financial Due diligence

    The seller or vendor of a business that is being sold, on the other hand, performs sell-side financial due diligence. This process concentrates on areas of interest for potential acquirers or buyers to avoid snags in the transaction. Sell-side financial due diligence benefits the seller by highlighting issues that might otherwise go undetected through an internal audit. A sell-side financial due diligence programme requires the same work; it is simply approached from a different perspective.

    Why a startup should run for Financial Due Diligence?

    There are generally two types of Financial due diligence. One of the buy side Financial Due diligence and the sell side due diligence.

    • Buy-Side Due Diligence

    The person who completes the financial due diligence is the business buyer or acquirer who intends to buy the target business in question. A family office, sovereign wealth fund, venture capitalist, strategic investor, investment bank, pension fund, insurance company, etc. are all examples of potential buyers. The financial health of the target company is the main subject of the buy-side FDD. Data on the company’s revenue, expenses, cash flow, balance sheet, debtors, creditors, profitability, growth rate, market share, etc. must be gathered. To fully understand the target’s financial situation, a buyer looking to buy a company or a start-up business would carry out buy-side financial due diligence. In a perfect world, the acquirer’s interests would be met and the target company’s financial position would be established as strong, stable, and with a bright future.

    • Sell-Side Financial Due diligence

    The seller or vendor of a business that is being sold, on the other hand, performs sell-side financial due diligence. This process concentrates on areas of interest for potential acquirers or buyers to avoid snags in the transaction. Sell-side financial due diligence benefits the seller by highlighting issues that might otherwise go undetected through an internal audit. A sell-side financial due diligence programme requires the same work; it is simply approached from a different perspective.

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    Testimonial
    Based on 25 reviews
    binen
    binen
    2022-04-08
    Pooja Terwad was quite responsive and patient enough in dealing my case. Also due to the current situation , she adjusted her schedule to suit my needs and we could do most of our discussion online which was time saving. Thank you so much for all the help that you done for me
    Saurabh Agnihotri
    Saurabh Agnihotri
    2022-04-06
    For a startup there are too many things for founders to focus on. Thankfully startup gig reduces your burden for host of services related to legal and compliance and let’s you focus on your core work. It has been a very fruitful relationship for us.
    nandini issar
    nandini issar
    2022-01-17
    I had discovered the start up gig on Google while I was looking for a corporate legal advisor..And called up a few out of which found Ms pooja terwad very good .Not only was she prominent in responding but also gave a patient hearing to my case during the meeting..I am very satisfied with the services and correct guidance regarding my legal issues.. would highly recommend for corporate matters ..
    Parizad Sidhwa-Kampani
    Parizad Sidhwa-Kampani
    2022-01-14
    Startup Gig team under Pooja’s leadership is capable, super efficient and responsive. Apart from subject matter expertise, their vast experience across core and allied matters provides valid candid inputs and clear guidance for decision making and risk assessment. Look forward to a long association with Pooja.
    Shrivatsa Vakil
    Shrivatsa Vakil
    2022-01-14
    I hired Pooja to conduct due diligence on a company I wanted to invest in. And her work was absolutely comprehensive. She did it not only in a timely manner, but the report presented by her exceeded expectations. She delved into the smallest details of the company and gave me amazing feedback. Beyond that, she is extremely responsive and professional and it is my pleasure to conduct more of my legal work through The Startup Gig.
    Gunjali Kothari
    Gunjali Kothari
    2021-07-27
    I remember reaching out to Pooja over a call for an urgent delivery and work, and she not only came to meet and kick started the whole process in a day. Extremely professional and helpful and very diligent team. Kudos and cheers
    NIKUNJ ARORA
    NIKUNJ ARORA
    2021-07-26
    It’s been more than four (4) months since I have been interning under PTA. I’m grateful to Pooja ma'am for giving me this opportunity. Dealing with complex agreements, due diligence, legal research, etc. has been part of my internship. Professionalism, high-quality, ethical standards, a vast amount of knowledge, expertise in handling start-ups, handling and communicating with clients effectively are the key highlights of PTA.
    arjun chadha
    arjun chadha
    2021-07-26
    Best service providers and very quick in response. Really loved the all services. Thanks for the part of The Zero Games Cheers, Arjun Chadha CEO The Zero Games Pvt ltd