About A&M
Financial Accounting Due Diligence
Without understanding history, it’s impossible to understand current value and forecast future results.
Alvarez & Marsal’s Financial Accounting Due Diligence team provides the foundation of our transaction advisory services offering. Our team is comprised of experienced former Big Four CPA financial accounting due diligence professionals, who analyze quality of earnings and working capital requirements through financial statements, independent auditor work papers and on-site discussions with executive management. Our focused and tailored approach enables us to rapidly identify and understand potential deal breakers, value drivers and other areas of specific interest to
our clients.
Our Financial Accounting Due Diligence services include:
- Assess the target’s quality of earnings, including the identification of overly aggressive accounting policies and the assessment of the adequacy of judgmental accounts, as well as GAAP accounting and SEC reporting compliance
- Analyze cash flows (e.g., working capital changes, capital expenditures, etc.)
- Review on and off balance sheet assets and liabilities
- Identify key business drivers, trends in profitability and significant concentrations of risk
- Evaluate management’s forecast
- Conduct comprehensive discussions with management and their advisors
- Perform both buy-side and sell-side due diligence