Financial Due Diligence
Financial due diligence — quality of earnings, net working capital, net debt, cash-flow normalisation and hidden liabilities before a deal.
- Estimate Cost
- ₹75,000 – ₹5,00,000
- Typical duration
- 21 days
Service overview
Detailed audit of target company's historical financial performance, Quality of Earnings (QoE), assets, liabilities, and cash flow normalization.
Who needs it? / When is it needed?
Buyers, venture capitalists, or PE funds before executing M&A or equity investments.
What to expect from the WCP Professionals
Revenue quality review, working capital normalization, balance sheet stress testing, and EBITDA adjustments.
Key deliverables
Financial Due Diligence (FDD) Report, Quality of Earnings Analysis, Working Capital Target Schedule.
Standard turnaround time
2 to 4 weeks.
Government fees, timelines & key outcomes
No government fee; the review is advisory.
Key outcomes: a clear view of sustainable earnings, normalised working capital and net debt that supports price and deal terms.
Forms & filings involved
- No statutory filing
- Findings feed the share purchase or investment agreement — price adjustments, completion accounts or locked-box mechanics, and warranties
Documents required
Audited financial statements (last 3-5 years), management accounts, trial balances, bank statements, tax filings.
What we need from you
Data Room access, CFO/Finance team access, detailed chart of accounts.
Important conditions
Accuracy of underlying accounting records in the data room.
Additional information
Crucial for price adjustment during deal negotiations.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
What is quality of earnings?
An analysis that removes one-off and non-recurring items to show the sustainable earnings of the business.
Why does net working capital matter?
Deals often set a normal working-capital target, and the price is adjusted if actual working capital at completion differs.
What is net debt in a deal?
Borrowings and debt-like items minus cash, deducted from enterprise value to arrive at the equity price.
How long does financial due diligence take?
Typically 2–4 weeks, depending on data availability and the size of the business.