Financial Due Diligence
Overview
Financial due diligence (FDD) clarifies what a transaction is truly worth — surfacing the risks, trends, and adjustments that shape valuation, deal structure, and negotiated terms before a transaction closes. Koretoff Advisory applies the same rigor whether a client is evaluating a target or preparing a business for sale.
Quality of Earnings (QoE)
Quality of earnings analysis evaluates a target's reported earnings to assess their sustainability and accuracy — identifying one-time items, non-recurring events, and other normalization adjustments needed to establish a true, forward-looking view of profitability.
Net Working Capital (NWC) Analysis
Net working capital analysis establishes the capital a business actually needs to operate day-to-day, setting an accurate, deal-specific target that protects against value erosion or disputes after closing.
Data Integrity & Completeness
Before any valuation or deal term can be trusted, the underlying financial data has to hold up. Koretoff Advisory reconciles reported figures back to source documentation, confirms nothing material is missing from the data room, and tests for financial risks, trends, and unusual transactions — including accounting policies and treatments under U.S. GAAP — that could affect price, deal structure, or negotiated terms, on either side of the transaction.
Financial Narrative & Reporting
A thorough financial analysis is only as useful as the story it tells. Koretoff Advisory translates the underlying data into a clear, well-supported financial narrative and client-ready reporting deliverables that investors, lenders, and other stakeholders can act on directly — giving both sides of a transaction a common, defensible foundation for valuation and negotiation.
Deal Support & Advisor Coordination
Koretoff Advisory coordinates with legal counsel, investment bankers, and other deal advisors throughout the transaction, keeping the financial narrative aligned with the broader deal strategy from initial diligence through closing.
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