Due Diligence
Investment, acquisition, and lending decisions depend on a clear, independent view of a target company’s financial position, tax exposure, and compliance status. Hegde Hegde and Associates LLP provides financial due diligence services structured to support these decisions with documented, CA-reviewed findings.
Partner reviewedDocumented processBengaluru office
Why Financial Due Diligence Matters
A target company’s financial statements do not always reveal the full picture of its financial health, tax exposure, or contingent liabilities. Financial due diligence accounting procedures examine underlying records, reconciliations, and compliance history to surface issues that would not be apparent from statements alone.
For investors, acquirers, and lenders, a financial due diligence report provides an independent basis for valuation, deal structuring, and risk allocation in transaction documentation.
Why Businesses Need This Service
- Investors or acquirers evaluating a target company ahead of a transaction.
- Lenders assessing a borrower’s financial position ahead of extending credit.
- Founders preparing their own business for investor due diligence ahead of fundraising.
- Joint venture partners seeking an independent financial review before formalising an arrangement.
- Businesses establishing customer due diligence requirements as part of onboarding processes, particularly in regulated sectors.
- Post-transaction review to confirm that representations made during negotiation are supported by the underlying records.
Our Approach
- 01
Assessment
Defining the scope of review based on the transaction and areas of concern.
- 02
Planning
Preparing a document request list and diligence timeline.
- 03
Documentation
Reviewing financial statements, ledgers, contracts, and compliance records.
- 04
Execution
Conducting financial, tax, and compliance analysis against the defined scope.
- 05
CA Review
Independent review of findings before the report is finalised.
- 06
Compliance Verification
Cross-checking statutory compliance history and contingent liabilities.
- 07
Reporting
Delivery of a financial due diligence report with findings and observations.
- 08
Continuous Support
Advisory on findings during transaction negotiation, where required.
Scope of Services
- Financial due diligence for M&A, investment, and joint venture transactions
- Review of financial statements, ledgers, and management accounts for accuracy and consistency
- Tax due diligence, including review of past filings and contingent tax liabilities
- Working capital and quality-of-earnings analysis
- Review of statutory compliance history under Companies Act, GST, and Income Tax provisions
- Contingent liability and litigation exposure review, based on available records
- Support in structuring customer due diligence requirements for regulated business onboarding
Business Benefits
- An independent, documented basis for valuation and deal structuring.
- Improved identification of financial and tax risks before transaction close.
- Stronger negotiating position through evidence-based findings.
- Reduced risk of post-transaction disputes arising from undisclosed liabilities.
- Clearer confidence for lenders and investors in the target’s financial position.
Why Choose Hegde Hegde and Associates LLP
- Due diligence findings reviewed and signed off by a qualified Chartered Accountant.
- Due diligence coordinated with our taxation, valuation, and audit practices.
- Structured documentation standards suited to investor and lender review.
- Practical, India-specific understanding of common financial and compliance risk areas.
- Timely turnaround aligned with transaction timelines.
Industries We Serve
Our due diligence engagements support investors and acquirers evaluating technology and IT services companies, D2C and e-commerce brands, and manufacturing enterprises, as well as businesses preparing for lender or investor review.
Technology & IT services
D2C & e-commerce
Manufacturing
Startups & funded ventures
Professional services
NRI individuals
Healthcare
Real estate
Financial institutions
NGOs & trusts
Hospitality
Education
Our Process
Each stage produces a defined deliverable, and nothing is issued to a client before the Chartered Accountant review stage is complete.
- 01
Discovery
Understanding the transaction and the client’s specific concerns.
- 02
Assessment
Defining the scope and document request list.
- 03
Documentation Review
Reviewing financial and compliance records against the scope.
- 04
Execution
Conducting the diligence analysis.
- 05
CA Review
Independent review of findings.
- 06
Reporting
Delivery of the due diligence report.
- 07
Ongoing Support
Advisory during negotiation, where required.
Frequently Asked Questions
A financial due diligence report typically includes an analysis of historical financial performance, working capital position, tax exposure, statutory compliance status, and identified risks or red flags relevant to the transaction.
Timelines vary based on the size of the target company and the scope of review, but most engagements are structured to align with the transaction timeline agreed between the parties.
No. Due diligence is also commonly used for smaller investment rounds, joint ventures, lending decisions, and by founders preparing their own business ahead of investor engagement.
A statutory audit expresses an opinion on whether financial statements are fairly presented under applicable accounting standards. Financial due diligence is a broader, transaction-specific review of financial, tax, and compliance risk relevant to the specific deal.
Yes. We support both buy-side due diligence for investors and acquirers, and sell-side or vendor due diligence for businesses preparing for a transaction.
Discuss Your Due Diligence Requirements
Whether you are evaluating a target company, preparing your own business for investor review, or establishing due diligence processes for customer onboarding, our team is available to discuss your specific requirement.
Content reviewed by CA Ramkumar Hegde, Partner, Hegde Hegde and Associates LLP.