Core Engagement

Financial due diligence support

Analytical capacity inside a live diligence workstream — earnings quality, net debt, working capital and databook analysis built to a reviewable standard and delivered on the deal timetable.

When it is used

  • Buy-side confirmatory diligence

    Independent testing of the earnings, cash and working capital position an acquirer is being asked to pay for.

  • Sell-side readiness

    Preparing the numbers before a buyer's adviser tests them, so adjustments are evidenced rather than conceded.

  • Capacity on a live mandate

    Analytical support for a transaction advisory team already committed elsewhere, working to your templates and conventions.

  • Lender and investor review

    Earnings quality and debt-like item assessment supporting a credit paper or investment committee decision.

Workstreams covered

Scope is set by what will be argued over in the sale and purchase agreement, not by a standard report index.

  • Quality of earnings

    Historical EBITDA rebuilt from the ledger, with one-off, non-recurring, owner-related and accounting-policy adjustments evidenced item by item.

  • Net debt and debt-like items

    Identification and quantification of borrowings, leases, deferred consideration, pension and employee liabilities, accrued interest and other claims on value.

  • Normalised working capital

    Monthly working capital history, seasonality analysis and a defensible peg with in-scope and out-of-scope items defined.

  • Revenue and margin analysis

    Revenue bridges by product, customer and channel, with cohort retention, concentration and pricing versus volume decomposition.

  • Cash flow and capex

    Conversion of earnings to cash, maintenance versus growth capex split and identification of funding gaps.

  • Databook construction

    A linked Excel databook that ties to the trial balance and supports every figure quoted in the report.

How the work sits

  • Scope of the work

    Volaxi performs and owns defined analysis. The lead adviser retains the signed report, the opinion and the client relationship.

  • Working to your format

    Databooks and schedules are built in your house template so output can be dropped into the report without rework.

  • Evidence trail

    Every adjustment carries a source reference, a rationale and a stated degree of judgement.

What is delivered

  • Excel databook

    Linked analysis tabs tying to the trial balance, structured for reviewer navigation.

  • QoE and net debt schedules

    Adjusted EBITDA and net debt bridges with rationale and supporting evidence against each item.

  • Working capital analysis

    Twelve to twenty-four month history, normalisation and a proposed peg with the basis stated.

  • Findings summary

    A concise note of the issues that move price, deal structure or the sale and purchase agreement.

  • Open-item tracker

    Outstanding information requests and management questions maintained through to signing.

Engagement process

Typically three to five weeks, aligned to the transaction timetable, with interim findings shared as the analysis develops.

01

Scope alignment

Agreement with the lead adviser on workstreams owned, report format and the timetable.

02

Data room review

Review of available information and a gap list issued within the first days of access.

03

Analysis build

Databook construction, adjustment testing and management question list preparation.

04

Iteration

Findings reviewed with the deal team, refined as further information and responses arrive.

05

Through to signing

Support on schedules, SPA mechanics inputs and completion accounts questions as the deal closes.

Discuss an Engagement

If you require support with financial modelling, business valuation or financial due diligence for a live transaction or strategic engagement, we'd be pleased to discuss your requirements.

Discuss an Engagement