Where Quantify Adds Value in a Due Diligence Process

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Tom Faichnie

Head of Due Diligence

We often hear people say that due diligence is like an MOT, it’s like kicking the tyres or looking under the bonnet. But that’s not what diligence is about. Diligence is about a buyer understanding what they are buying and where the value is in the business. It highlights crucial components such as cash and working capital. That’s what we provide.

Buyers want more than just a set of numbers. They want to know what’s actually happening behind them, in terms of projects, contracts or customer relationships. They want greater detail than just looking at a set of financials or even management accounts.

What truly makes a business tick? That’s what a buyer wants to understand through the diligence process, as much as knowing the numbers are okay. Our role is to help tell the story of the business through the numbers.

When you are a diligence provider, a seller is never particularly happy to see you coming, but here are a few ways we can add value for everyone involved in the process.

  • We regularly receive financial information which is not in the format required by a purchaser / investor. It is easy for a DD provider to say it is insufficient but we work with the company to use what is available to give our client the comfort they need.
  • For us, due diligence is about how we interpret the raw data and translate this into meaningful information that can give a buyer comfort to do the deal.
  • We pride ourselves on our ability to roll-up our sleeves and get into the data and systems, no matter how messy, and produce meaningful analysis and metrics that often, the seller has never looked at.
  • It’s rare we do a project where the seller doesn’t learn something about their business.
  • Our job doesn’t stop once the report is delivered. We are an integral part of the deal team, working with the buyer all the way through to completion, inputting on completion mechanisms, SPA and funds flows. We even feed into the 100 day plan and are happy to work with Management to ensure a smooth delivery.

As a result of our experience in due diligence and track record of adding value to transactions. We have been shortlisted for two prestigious awards in the last two years.

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