Financial due diligence and business acquisitions
7 mins
Whether you are buying or selling a business, we can provide the necessary transaction and financial due diligence services.
What we offer
We have a wealth of experience in delivering transaction and financial due diligence services from working with acquisitive companies, private equity and venture capital funds, entrepreneurs, and MBO/MBI teams, in a wide range of industries.
Due diligence may encompass financial, tax, legal, operational, commercial, and human resources assessments, depending on the specific nature of the transaction. However, we tailor the scope of our review to meet the unique requirements of each engagement.
Our Financial Due Diligence Services comprise:
- Buy-side due diligence
- Sell-side (or ‘vendor’) due diligence
- Sale and Purchase Agreement reviews
- Preparation or review of completion accounts
- Tax due diligence
Our buy-side financial and tax due diligence services provide an independent assessment of a target business. We help clients identify and assess associated risks of a transaction and attempt to minimise and mitigate those risks through advising on the drafting of the Sale and Purchase Agreement.
We also support banks and other financial institutions by performing Pre-Lending Reviews and Independent Business Reviews.
Vendor due diligence can give a seller greater control over the process by addressing key concerns and issues that may be relevant to a purchaser. Ultimately, this can protect value or even secure a higher price for the business.
We are sector agnostic and have extensive experience across a wide range of sectors including technology, automotive, manufacturing, entertainment, professional services, and distribution.
Find out more about our full range of sell-side advisory services and our Management Buyout (MBO) services.
Our Corporate Finance services
Frequently asked questions
- What is financial due diligence?
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Financial due diligence is a comprehensive review of a company’s financial performance, position, and risks. It helps validate the business’s financial health before a transaction.
- Why is due diligence important?
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It identifies hidden liabilities, confirms the accuracy of financial information, and supports informed decision-making and negotiation.
- How long does financial due diligence take?
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Most due diligence projects take between two to six weeks, depending on the size and complexity of the business.
- Who conducts financial due diligence?
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Buyers typically engage professional advisers such as Mercer & Hole to perform due diligence on their behalf.
- What documents are reviewed?
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Key documents include financial statements, management accounts, tax filings, contracts, employee records, customer agreements, and other relevant business records.
- What is vendor due diligence?
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Sell side due diligence is commissioned by the seller to prepare a report for potential buyers, helping to streamline the sale process and address issues proactively.
- What happens after due diligence is complete?
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We provide a detailed report with findings, recommendations, and deal considerations. This supports final negotiations, share purchase agreement drafting, and closing.
- How does financial due diligence support deal negotiations?
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Findings from due diligence can influence price adjustments, warranties, indemnities, and deal structure which can enable buyers to negotiate from a position of strength.
- Can due diligence stop a deal?
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Yes. If significant risks, discrepancies, or red flags are uncovered, it may lead to renegotiation or withdrawal from the deal.
- How can I prepare for financial due diligence?
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Ensure your records are well-organised, resolve known issues, and work with advisers to anticipate and address potential concerns.
- What services can Mercer & Hole assist with post completion?
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We can support clients’ post completion by helping to prepare or review completion accounts, calculate earn-outs, manage tax compliance, and assisting with financial systems.
- What is a tax due diligence review?
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This is a focused review of a target company’s tax compliance, liabilities, and risks and is often conducted alongside financial due diligence.
Corporate Finance Specialists
Tania Phillips >
Director, Head of Transaction Services
Jacqui Lawman >
Tax Partner
Mark Baxter >
Tax Partner
Why work with us?
We provide practical, business focused advice to help you achieve your business objectives. Our team of experts are available at any one of our four office locations and have an extensive knowledge and experience across a wide range of sectors.
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AccessibilityFour offices in London, St Albans, Rickmansworth, and Milton Keynes
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Cross-Team ExpertiseJoined-up advice across all services, including Restructuring and Corporate and Business Tax
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Sector KnowledgeFood and agriculture, manufacturing, construction, logistics, technology, and business services
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Industry RecognitionShortlisted as Corporate Finance Advisory Firm of the Year, Dealmakers Awards
Selection of recent transactions
Click below for details of a selection of deals and transactions for which we have advised which demonstrate our breadth of experience and credentials within the corporate finance team
Recent transactions >
