Identifying under-reported expenses or unrecorded liabilities that artificially inflate profitability. Net Debt and Debt-Like Items
A Financial Due Diligence (FDD) report is a comprehensive analysis of a target company’s historical and projected financial performance. Unlike a standard financial audit, which verifies past compliance with accounting standards, FDD is inherently forward-looking and commercial. It assesses the sustainability of earnings, identifies hidden liabilities, and evaluates cash flow drivers to ensure the buyer pays a fair price. 2. Core Pillars of a KPMG Financial Due Diligence Report financial due diligence report kpmg pdf
A clear definition of the financial periods analyzed and the limitations of the data reviewed. : Evaluation of the cash required to run
: Evaluation of the cash required to run the business and future capital expenditure needs. deferred severance pay
Unfunded pension liabilities, deferred severance pay, underfunded capital expenditures, historical tax exposures, and stretched accounts payable. 4. Net Working Capital (NWC) Review
For a closer look at these services, you can visit the KPMG Due Diligence service page or review their Integrated Due Diligence brochure . Due Diligence - KPMG International