Financial due diligence is the in-depth analysis of the financial and economic performance of a company aimed at identifying and normalising aspects that are discretionary, one-off, non-recurring or non-business related and hat distort the company’s operating result or capital structure.
For a company seeking investors, it is essential to conduct a financial due diligence, to anticipate what will be the questions and in-depth analysis by the counterparty and to prevent false expectations or repercussions in terms of value.