Due Diligence

Being mindful of mitigating the risks associated with an acquisition, due diligence by an experienced professional will provide you, your professional advisors and your financiers with the necessary comfort or indeed highlight areas of concern that require attention or consideration prior to completing a transaction.  


Buyer Due Diligence

Trio works with Buyers to tailor the due diligence approach to consider the general integrity of the purported financial results and / or reviewing identified key issues.  Key metrics include:

• Reported and forecast financial results
• Key Employees
• Gross profit / margin analysis
• Major customers
• Supplier arrangements / terms
• Assets

The consequences of a Due Diligence could be:

• Let’s Go!     Satisfaction of the Due Diligence condition of the Sale of Business contract
• Amendment to or creation of a contractual condition e.g. if the Due Diligence found that a customer contract was about to expire the new condition for completion of the transaction may be the execution of a new agreement with the customer
• If an identified matter cannot be negotiated to both parties satisfaction then the transaction would collapse
• An acquisition Financial Due Diligence on behalf of the Purchaser may be a staged process:
  • Undertaking preliminary investigation of the business and the opportunities – is it right to make an offer?
  • Following a successfully negotiation / Sale Agreement, undertaking a thorough review of the business and financial records prior to settlement – is all as it appears?

Seller Due Diligence

Could your business survive a Due Diligence?  If the exit or succession plan would likely result in an external party undertaking a Due Diligence on your business how would you come out of it?  

Trio is able to assess a Vendor’s Financial Due Diligence preparedness.


Trio advises businesses on preparing for sale:

• Is selling the best option - Identifying exit options
• When is a good time to sell
• Getting the house in order – financial records, contracts, non-financial records
• Accounting data and control reports
• Dealing with owners that are integral to the business
• Customer and supplier contracts and arrangements
• Profit recorded for Income tax v Accounting profit
• Fixing problems and increasing profits before you sell

The Frequently Asked Questions page has more on Due Diligence