Financial due diligence for acquisitions is where buyers want to validate the SDE/EBITDA and bridge the gap to predictable cash flow. That means going beyond the financial statements to test earnings quality, normalize working capital, and surface tax and payroll exposures that can change value or deal terms.
This article explains what Canadian buyers should actually look for in a diligence process, how asset and share deals change the risk profile, customer concentration, and government compliance often matter more than the seller’s CIM suggests.
In this in-depth blog post we cover:
Why financial due diligence matters before closing an acquisition
How buyers test whether SDE/EBITDA is sustainable
What a Quality of Earnings review is and why it matters
Assess normalized working capital for a fair working capital peg
Why cash flow matters more than the marketed SDE/EBITDA
How asset purchase vs share purchase changes financial risk
A practical buyer diligence checklist
…and more!
Let’s dive in!
Power to you,
Think Team 🙏
(P.S. - If you liked this newsletter, share it with a friend)
