While every transaction is unique, a standard KPMG style FDD report centers on three fundamental financial pillars: 1. Quality of Earnings (QofE)
This is a short overview at the start. It gives the big boss a quick summary. It lists the main findings and major red flags. 2. Quality of Earnings (QofE)
: Analysis of "Actual Earnings" to identify one-off events and determine "sustainable" EBITDA. financial due diligence report kpmg pdf
: It gives the buyer power to ask for a lower price [2, 3]. Key Sections Inside a KPMG Report
: Assessing digital assets and data-driven revenue opportunities. While every transaction is unique, a standard KPMG
: Evaluating the reliability of the systems and financial data provided.
A financial due diligence report modeled after institutional frameworks like KPMG's is an indispensable toolkit for strategic decision-making. By thoroughly investigating the quality of earnings, normalizing working capital, and unearthing hidden liabilities, deal makers can transition from blind speculation to data-driven execution. Ultimately, the report protects capital, optimizes valuation, and ensures a seamless path to post-merger integration. It lists the main findings and major red flags
: Review of asset quality (e.g., obsolete inventory) and verification of reported debt.
What (e.g., Quality of Earnings, Working Capital, Net Debt) do you need to focus on? Share public link