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Financial Accounting Due Diligence

Alvarez & Marsal's dedicated Global Private Equity Services group works with investors and their portfolio companies to provide independent analysis and end-to-end services across the investment lifecycle that deliver results in every economic cycle.

A&M's Private Equity Services professionals leverage the firm's operational heritage and world-class finance, accounting and business consulting expertise, and the experience of its financial, operational and transaction tax diligence professionals in a one-of-a-kind, integrated approach to best serve clients.

Alvarez & Marsal's Global Financial Accounting Due Diligence team of experienced, former Big Four CPAs analyze quality of earnings and working capital requirements through financial statements, independent auditor work papers and on-site discussions with executive management. By utilizing an integrated approach with A&M professionals with deep operating and transaction tax-related experience, the team uses a focused and tailored approach to rapidly identify and understand potential deal breakers, value drivers and other areas of specific interest to our clients.

Our professionals have significant experience on both the buy- and sell-side of transactions across all industries, including healthcare, financial institutions, energy, environmental services, technology and education.

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
  • Exit Support assistance

Learn more about A&M's integrated services: Performance Improvement and Transaction Tax.

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