An FDD report is an independent analysis of a target company’s financial health. Unlike a standard financial audit, which looks backward to ensure regulatory compliance, FDD evaluates the sustainability of earnings and looks forward to assess future deal value. Key Objectives
KPMG prepares financial due diligence reports in two primary transaction contexts: and sell-side (vendor) due diligence.
: Identifying financial upside and risks related to Environmental, Social, and Governance factors. financial due diligence report kpmg pdf
If you are searching for a , you are likely looking for a structural template, a real-world example, or a deep understanding of what these corporate documents contain. This comprehensive guide breaks down the architecture of a KPMG FDD report, its core analytical pillars, and how to leverage its insights to secure the best deal possible. What is a Financial Due Diligence Report?
The findings within the NWC and Net Debt sections directly dictate the drafting of the Purchase Price Adjustment mechanisms in the Legal Share Purchase Agreement (SPA). An FDD report is an independent analysis of
+-------------------------------------------------------------+ | 1. Executive Summary & Key Deal Findings | +-------------------------------------------------------------+ | 2. Quality of Earnings (EBITDA Bridge & Adjustments) | +-------------------------------------------------------------+ | 3. Net Working Capital & Historical Cash Flows | +-------------------------------------------------------------+ | 4. Net Debt & Underlying Financial Commitments | +-------------------------------------------------------------+ | 5. Commercial Drivers, Revenue & Margin Analysis | +-------------------------------------------------------------+ | 6. Appendices, Scope of Work & Data Caveats | +-------------------------------------------------------------+ Executive Summary
The primary purpose of any FDD report is risk mitigation. A thorough financial due diligence process helps uncover risks that could otherwise remain hidden until after closing. As KPMG notes, due diligence helps participants gain control over the process and a better negotiating position. : Identifying financial upside and risks related to
To keep the business running post-transaction, the buyer needs a sufficient level of working capital. KPMG analyzes historical cycles to establish an "NWC Peg" or target baseline.
The benefits of a KPMG financial due diligence report include: