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Financial Due Diligence Services

Get Due Diligence Services by THE STARTUP GIG

Overview of Financial Due Diligence Services

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

Why choose The Startup Gig For Financial Due Diligence Service

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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.

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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.

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.

Testimonial

Iyer Gayatri
Iyer Gayatri
2023-03-02
I would highly recommend Ms Pooja Terwad and her team .They are very professional and responsive. Pooja is generous with her knowledge and makes sure that all our queries are well attended. Glad to be associated with The Startup Gig.
Aakanksha G Paranjpe
Aakanksha G Paranjpe
2023-02-28
Pooja and the team at The Startup Gig are extremely helpful, prompt and will give you sound legal advice- crucial for any new company. Thanks for always being just a phone call away!
Mantuja Bibi
Mantuja Bibi
2022-12-30
The view Pooja handles her clients is commendable. For my startup..I couldn't have had a better lawyer. She spends a lot of time understanding the issue and then comes up with the best solution. Her team is equally competent. I have worked with Pooja and Shubhi on multiple contracts and transactions.
Aman Dasot
Aman Dasot
2022-09-03
The company has been really helpful and has provided with very professional work and the most commendable part was the friendly guidance through the legalities. Kudos to Pooja and Deekhit:)
Saurabh Gupta
Saurabh Gupta
2022-07-25
Great work by The Startup Gig! We have used their services and they are top notch in their segment. I would highly recommend their services to those who are running a startup and need a modern solution when it comes to legal matters.
Gaurav Srivastav
Gaurav Srivastav
2022-05-31
Pooja is a ball of fire, gets the gist of the conversation quickly and is able to pin point important things to consider accurately. She is also able to give a quick holistic view of the available solutions.
Vaneet Garg
Vaneet Garg
2022-05-25
Very Professional, helpful, listens to you with whole heartedly, Guide you in an efficient and realistic manner. Very satisfied with my interaction with them
Arjun Vijayanarayanan
Arjun Vijayanarayanan
2022-04-15
I had a wonderful experience working with Pooja on a startup exit settlement agreement. All the processes, communications and pricing were all amazing. Their knowledge on all startup related issues/concerns and being flexible working with startups are all key for any startup to collaborate with The startup GIg 🙂 I highly recommend their services and I wish them the best 🙂
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.
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