Service
Financial due diligence
The seller's numbers describe the business the seller wants you to buy. Due diligence establishes what you are actually buying, and it costs far less than discovering the difference afterwards.
Who this is for
- Anyone buying a business or a stake in one
- Investors putting money into a private company
- Partners being asked to accept a valuation
- Buyers shown a summary rather than the underlying records
What it includes
- 01
Quality of earnings
Whether reported profit is sustainable and repeatable, or the product of one-off items, related-party pricing and timing.
- 02
Working capital analysis
The cash the business actually needs to run, and whether the normal level has been flattered before sale.
- 03
Debt and hidden liabilities
Borrowings, guarantees, unrecorded gratuity, unfiled tax positions, disputes and commitments not on the balance sheet.
- 04
Tax exposure review
Positions taken in past returns and what an assessment could surface, because this becomes yours on acquisition.
- 05
Revenue concentration
Whether the revenue is a business or a handful of relationships that may leave with the seller.
- 06
Findings and price implications
What we found, what it means for the price, and what to protect in the agreement.
How it works
- 01
Agree the scope
Deal size sets depth. A small acquisition does not need the process a large one does.
- 02
Request and review
A structured information request, then analysis of what comes back, and note of what does not.
- 03
Test the story
Reported performance tested against bank records, tax filings and operational data.
- 04
Report before you commit
Findings, price implications and the protections worth negotiating, delivered before signing.
Financial due diligence checklist for Nepal
| Area | What we check |
|---|---|
| Financial statements | Three years of audited accounts, management accounts and the trial balance behind them |
| Quality of earnings | One-off items, related-party income and costs, revenue recognition timing |
| Working capital | Receivable and payable ageing, stock counts and slow-moving stock |
| Debt and liabilities | Bank loans, guarantees, leases, pending claims and off-balance-sheet commitments |
| Tax | Income tax, VAT and TDS returns, assessments, open notices and tax clearance |
| Legal and corporate | Company registration documents, share register, board minutes and key contracts |
| People | Payroll, SSF and provident fund deposits, gratuity and leave obligations |
| Assets | Ownership of land, buildings and major equipment, and whether they are pledged |
| Customers and suppliers | Concentration, contract terms and changes after the deal |
The exact scope is agreed per deal. The findings feed directly into price, warranties and conditions.
How we price this work
There is no standard price list, because the fee follows the scope and the depth of the work. We agree both in writing before anything starts.
- ScopeWhat is included, and what is not, set out in plain terms.
- Volume and condition of recordsClean, current books cost less to work from than a backlog.
- Depth and complexityA review is different from a full defence, filing or build.
- DeadlineWork against a fixed date, such as a reply to the IRD, is planned around it.
One-off work is quoted as a fixed fee for a defined scope. Ongoing work is a monthly retainer. The first 30-minute call is free, and you leave it with an indication of the cost and the time involved, even if you decide not to hire us. Book a free call.
Questions people ask
What does due diligence cost relative to the deal?
A fraction of a percent of most deal values, and it routinely moves the price by more than it costs. A fixed fee, scoped to deal size, agreed before work starts.
The seller will not share detailed records. What then?
That is itself a finding. We tell you what was withheld and what it usually conceals, so you can decide whether to proceed, reprice, or protect yourself in the agreement.
How long does it take?
Three to six weeks for a typical private company, depending on record quality and how quickly information arrives.
Do you handle the legal side?
No. We cover the financial, tax and commercial position. Legal drafting and title work sit with your lawyer, and we work alongside them.