Getting Deal Conviction through effective Due Diligence
Our experts undertake a thorough Due Diligence process that can either turn out to be a Deal maker or a Deal breaker

KCM’s bespoke Due Diligence methodology focuses on core business, commercial and financial aspects which ultimately drive valuation in any transaction, may it be financial or strategic deal. Our approach is targeted at providing validation of key value drivers on any deal through an ongoing and dynamic business risk assessment. We follow a holistic approach to Due Diligence covering accounting, financial, commercial, operational, legal, taxation and regulatory aspects involved in any transaction, keeping synergies at the heart of any deal.

Our Due Diligence experience spans across transactions such as Mergers, Acquisitions, Demergers, Divestitures, Spin-offs, Carve-outs, Joint Ventures, Strategic Alliances, Reorganisation & Restructuring, Private Equity and Venture Capital Investments among other forms of strategic as well as financial transactions.

We have achieved successful deal closures on our Due Diligence engagements across transactions ranging from US$ 1 Mn to US$ 5 Mn in case of Start-ups and from US$ 10 Mn to US$ 100 Mn in case of M&A / Strategic deals.

Our depth of experience and breadth of service offerings in the field of transaction advisory is largely due to the cross-functional team of professionals possessing diverse set of competencies in the areas of finance, taxation, legal, regulatory and compliance, which helps us provide holistic solutions even for the most complex deal issues.

KCM Methodology for Due Diligence

KCM’s Due Diligence methodology focuses on the key deal rationale, including application of accounting principles, management reporting system & internal controls, quality of sustainable earnings, normalised working capital, adjusted net debt and debt-like items, commercial terms with key customers and suppliers including dependencies, nature of capital expenditure, analysis of historical and projected cash flows, identifying and validating tax efficiencies and exposures.

Some of the apparent benefits derived out of our extensive Due Diligence exercise would include early identification of potential deal issues, focus on sustainability of earnings through extensive management discussions, providing key inputs on net debt and normalised working capital that directly impact valuation, factual confirmation with management to avoid unpleasant surprises, giving constructive feedback on accounting policies and internal control procedures, providing key inputs for effective transaction closure and post-deal integration.

Our effective and concise reporting on Due Diligence covers our findings through engaging charts, tables, bridges and supporting financial analysis to aid executive management commentary. In addition to standard financial, commercial and tax matters, our recommendations also include risk mitigation and structuring aspects, value negotiations, setting out conditions towards transaction closure, supporting transaction documentation and post deal integration.