What is financial due diligence?
Financial due diligence is the deep review a buyer runs on your numbers before closing. Running it yourself first — sell-side diligence — is how you stop problems from becoming price cuts or dead deals.
What buyers check
Quality of earnings (are profits real and repeatable?), working capital, revenue recognition, customer concentration, and any liabilities hiding off the face of the accounts.
Why do it yourself first
Problems a buyer finds become leverage — price reductions, delays, or a collapsed deal. Problems you find first become things you fix quietly, on your own timeline.
When to start
Ideally 6–12 months before going to market, so there's time to clean up earnings quality and documentation and let the business show its true value.
FAQ
What is financial due diligence?
It's the review a buyer runs on your financials before closing — verifying earnings quality, working capital and risks. Sell-side diligence means running it yourself first so nothing derails the deal.
Why is sell-side due diligence worth it?
Because problems found by the buyer become price reductions or dead deals. Problems you find first get fixed on your own terms.
Want this done for you?
Our Financial Due Diligence service turns this into a defensible result.