Financial Due Diligence Report Kpmg Pdf
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
The report determines the normal level of working capital required to operate the business, ensuring the buyer is not overpaying due to a temporary, artificially low working capital position at closing. 5. Cash Flow Analysis
Revenue from a discontinued product line or a legal settlement. financial due diligence report kpmg pdf
Integrated Due Diligence Brochure : Outlines the scope of financial, tax, and commercial DD.
Recent trends visible in 2024-2025 KPMG reports include: A Financial Due Diligence (FDD) report is a
| Component | Amount ($M) | Commentary | | :--- | :---: | :--- | | | 15.0 | As per Seller's management accounts. | | Add: Non-recurring legal fees | 1.5 | One-time litigation settlement. | | Add: Owners' compensation excess | 0.8 | Normalizing CEO salary to market rate. | | Less: Capex repair & maintenance | (0.5) | Seller expensed items that should be capitalized. | | Adjusted EBITDA | 16.8 | Normalized Earnings Power. |
I can provide tailored templates, frameworks, or analytical steps based on your specific deal context. Share public link Cash Flow Analysis Revenue from a discontinued product
This write-up is designed to serve as an executive summary or a guide for understanding the structure, purpose, and key components of a typical PDF report issued by KPMG’s Deal Advisory practice.
Key benefits of a sell-side due diligence report include:
Evaluating the collection health of accounts receivable and the obsolescence risk of inventory.
Assessing the true value of the balance sheet, identifying overvalued assets, and uncovering unrecorded liabilities.