Buy-Side Financial Due Diligence (FDD)
Dissecting financial narratives to uncover underlying earnings quality and structural liabilities.
What We Do
Our methodology goes beyond checklist-based auditing. We employ forensic-level rigor to validate the economic reality behind reported figures, ensuring capital is deployed with absolute clarity.
QofE Analysis
Adjusting EBITDA for non-recurring items, normalization of management fees, and revenue recognition integrity.
Net Debt Analysis
Identifying debt-like items including unfunded pension liabilities, deferred maintenance, and tax contingencies.
WC Normalization
Determining the target working capital through seasonal trend analysis to prevent cash leakages at closing.
Cash Flow Assessment
Mapping the bridge from EBITDA to FCF to assess the true liquidity and debt-servicing capability of the target.
Institutional Partners
01
Strategic Acquirers
Multinational corporations seeking synergistic expansion into emerging markets with high regulatory complexity.
02
PE/VC Investors
General partners requiring deep-dive technical due diligence to validate investment theses and entry multiples.
03
Infrastructure Funds
Asset managers evaluating long-term concessions and complex utility structures where financial integrity is paramount.
The QofE That Changed the Deal
During the acquisition of a Tier-1 Logistics operator, our forensic FDD uncovered systematic misclassification of capital expenditures as operational maintenance.
THE INTERVENTION
Forensic Sampling
Randomized ledger audit across 14 regional offices revealed inconsistent capitalization policies.
Working Capital Catch-Up
Identification of significant trade payable stretching, requiring a Rs. 30 Cr adjustment to the closing mechanism.
The Outcome
The client executed the deal at a revised valuation that protected internal IRR targets and mitigated post-closing cash infusion needs.
Latest Intelligence
Buy-Side Due Diligence in India: The 10 Earnings Quality Issues That Most Acquirers Miss
An exhaustive analysis of the unique accounting hurdles in the Indian mid-market segment.
Normalizing EBITDA in Volatile Markets
Mathematical frameworks for adjusting earnings during hyper-inflationary cycles.
Expansion of Global Risk Practice
Northrop Management welcomes three new partners to the New York advisory desk.
The Future of Deal-Making: AI in FDD
How machine learning is accelerating the identification of data outliers in massive ledgers.