nextepsolutionIndependent financial analysis for acquisitions — revenue verification, liability assessment, and deal valuation.
Before acquiring any business, independent financial due diligence is non-negotiable. Our analysts deep-dive into target company financials — verifying revenue quality, identifying hidden liabilities, assessing working capital needs, and validating the deal valuation.
In SME acquisitions across India, the numbers presented are rarely the numbers that matter. Revenue may be inflated by related-party sales, profits flattered by unbooked liabilities, inventory overstated, receivables uncollectable, and statutory dues quietly pending. Buyers who skip independent diligence discover these after the money has moved.
Financial due diligence is the buyer's insurance policy. It either confirms the deal is what it appears to be, arms you to renegotiate the price, or saves you from a purchase you would have regretted for years.
Quality of earnings: revenue verification against GST returns, bank statements, and customer concentration analysis; normalisation of one-off items; margin trend analysis. Balance sheet reality: receivables ageing and collectability, inventory verification, hidden and contingent liabilities, related-party transactions, and statutory compliance status across GST, TDS, PF, and ESI.
Deal support: working capital requirement analysis — the silent deal-killer in most SME acquisitions — debt and cash reconciliation, valuation validation against findings, and a red-flag report with clear price-adjustment recommendations you can take into negotiation.
Buyers acquiring businesses through our marketplace or privately, investors entering SMEs, and sellers who want vendor-side diligence done before buyers find the surprises first. Standard engagements complete in 5-10 business days.
We define diligence scope by deal size and risk, and issue a structured data request to the target — managed through a secure deal room.
Our analysts verify revenue, earnings quality, assets, liabilities, and compliance, cross-checking claims against GST, banking, and statutory records.
You receive a clear report: verified numbers, red flags, working capital needs, and specific valuation and structure recommendations.
We help you convert findings into price adjustments, indemnities, holdbacks, or walk-away decisions — whichever the evidence supports.
Verification of revenue streams, customer concentration, recurring vs. one-time income, and revenue recognition practices.
Identification of hidden liabilities — contingent obligations, pending litigation, tax disputes, and off-balance sheet items.
Normalized working capital calculation, seasonal variations, and net working capital adjustment recommendations for deal pricing.
Independent valuation cross-check, earn-out structuring advice, and price adjustment mechanism recommendations.
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