Financial & Tax Due Diligence
- Independent Internal Audit
- Digital Cloud Accounting
- Sole-Trader & Partnership Accounts
- Statutory Accounts
- UK & International Tax Planning
- Making Tax Digital for IT & VAT
- Landlord & Property Tax
- Capital Gain Tax
- Self Assesment Tax Return
- Corporation Tax Return
- Inheritance Tax Planning
- Tax Enquiries & Investigations
- Financial & Tax Due Diligence
- Business Startup Advisory
- UK Company Formation
- Company Secretarial Services
- Bookkeeping
- Management Accounts
- Payroll Services
- Auto-Enrolment Pensions
- Training
A clear understanding of a target company’s financial integrity and tax position is essential before completing any acquisition, investment, or strategic transaction. Financial and Tax Due Diligence provide the independent insight needed to assess true performance, uncover hidden risks, and protect value throughout the deal process.
What Is Financial Due Diligence (FDD)?
Financial Due Diligence evaluates the underlying financial health of a business—beyond the headline numbers. It analyses profitability, earnings quality, cash flow sustainability, working capital requirements, and the strength of the balance sheet.
FDD helps buyers validate whether reported results reflect the company’s real economic position and identifies issues that may impact valuation, deal structure, or future performance.
What Is Tax Due Diligence (TDD)?
Tax Due Diligence examines the target’s tax compliance history, current tax exposures, and potential future liabilities. This includes reviewing corporation tax, VAT, PAYE, R&D claims, capital allowances, and any unresolved HMRC matters.
TDD highlights risks such as unpaid taxes, aggressive tax positions, or missed filings, while also identifying valuable tax attributes that may benefit the buyer post‑completion.
Why FDD & TDD Matter
Together, these processes provide a comprehensive view of the business you are acquiring. They enable you to:
- Make informed investment decisions
- Negotiate pricing based on accurate financial insights
- Identify red flags early and avoid unexpected liabilities
- Structure warranties, indemnities, and protections against financial and tax exposures
- Understand future cash flow and tax implications
Objectives of FDD & TDD
FDD Objective
To assess the target’s historical performance, current financial position, and future prospects, ensuring the numbers presented truly reflect the company’s economic reality.
TDD Objective
To review the target’s tax compliance, historical filings, and potential tax exposures or tax assets, providing clarity on risks that could materially affect the transaction.