Diligence

We regularly act on behalf of banks and investors to carry out financial due diligence.  Here are some examples of the work that we have done.

Investor Due Diligence

We were acting for two venture capital houses that were investing £4million in an early stage technology company in the oil and gas sector.  The acquisition vehicle was set-up to facilitate a management-buy-in with capital for expansion and the target company had been trading as a start-up for several years.  The deal was to be completed in less than 4 weeks and we provided financial due diligence on the target and acquisition vehicle.

Bank Due Diligence

We were asked to carry out due diligence by a bank on an existing customer prior to providing substantial new lending.  The customer had a retail operation across more than 10 sites.  The initial investigation revealed several anomalies in the accounts and subsequent work showed that the largest stores were unprofitable.  Most damaging was a huge write-down in stock which turned a stated profit into a massive loss.  The bank declined to provide the new lending.