Financial Accounting Due Diligence

Alvarez & Marsal's Global Financial Accounting Due Diligence team is comprised solely of experienced former Big Four CPAs who 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 Readiness