Financial Due Diligence

Description of Purposes and Deliveries of the service ?

The primary purpose of Financial Due Diligence "FDD" is to help clients have a close look at a target company’s financial issues, including the quality of the asset, hidden liabilities, tax risks, quality of profit…and all finance-related issues raised explicitly by clients. Deliveries of this service is a detailed report presenting all related findings and explanation for each component of the financial statements of the target. Clients use this report to consider their decision on whether to proceed with investment or employ reasonable investment strategies.

Who are clients of the service?

  • Investment funds, or companies and organizations who wish to invest in the target company/ organization
  • In some cases, shareholders who are not trusting the management of the Company or among the shareholders themselves may want to use this service to make it clear for their concern.

 How is the service delivered?

The service is delivered through the following steps:

  1. Kick-off meeting with the client and the target: we discuss and make it clear and agreed on the scope of work; specific requests; schedules; contact persons; cooperation mechanism; list of information and documents to be provided by the target; procedures to be performed.
  2. Planning (at our office): we obtain an understanding of clients' business environment and related internal control systems to determine the most effective and efficient approach and resources for the clients.
  3. Fieldwork (at the target’s office): we will visit the target's premises and perform the following procedures basing on the planning work: (1) obtain details of all data presented on the financial statements; (2) analyze and study the nature of the data and transactions; (3) reconcile and check accounting documents & related papers; (4) interview related people of functional departments (such as Accounting & Finance Dept, IT Dept, Purchase Dept, Sale Dept, Inventory Dept, Production Dept, HR Dept, Management,..); (5) analyze and reconcile data; (6) recalculate data with proper models; (7) consult industry experts..).  Further procedures will be applied, if necessary or specifically required, are: observing physical counting of inventories and assets, sending confirmation letters to stakeholders such as customers, suppliers, lenders, investors;
  4. Reporting: After the fieldwork, we prepare and send the reports to the client. Direct meetings will follow, if required, to present the reports in detail.

While processing the work, we always try to apply proper technology and tools to our work to increase automation and efficiency. We believe that technology application will help to improve report quality, deadline commitment, confidentiality, and cost-saving.

How long does the service take?

It depends very much on the scope of work and responses & cooperation from the client and the target.

As the nature of the business, the Financial Due Diligence is comparably short.  We usually manage to finish the service within 2-3 weeks in most cases. For urgent circumstances, we may apply special processes and resources together with active cooperation from the client and the target.

Contact us

We provide services to enterprises across Vietnam. Should you want a meeting set-up, quotation, proposal or feedback