M&A and Financial Due Diligence: Secure Your Strategic Operations
Whether you are preparing a fundraise, an acquisition or a divestiture, financial due diligence is the critical step that determines the success of your transaction. Our expert CFOs guide you from preparation to closing.
Why financial due diligence matters
Financial due diligence is the process of thoroughly investigating a company's accounts and financial position in the context of a transaction (fundraising, acquisition, divestiture, merger). It allows investors and acquirers to verify the reality of the figures presented and identify potential financial risks.
For business leaders, preparing your due diligence in advance is a major strategic advantage. A "DD-ready" company inspires confidence, accelerates negotiations and maximizes valuation. Conversely, poorly maintained accounts or financial grey areas can derail a transaction or lead to significant discounts.
At Iter Advisors, we have supported over 100 million euros in transactions - fundraises, acquisitions and divestitures - for startups and SMEs in France and Spain.
Components of financial due diligence
- Financial statement analysis: review of balance sheets, income statements and cash flow statements over 3 to 5 years.
- Quality of Earnings: distinction between recurring and non-recurring revenues, organic vs. acquisition growth analysis.
- Working capital and cash analysis: study of working capital requirements, customer/supplier payment cycles, and net cash position.
- Debt and off-balance sheet commitments: identification of all financial debts, lease commitments, guarantees and ongoing litigation.
- Projections and business plan: validation of growth assumptions, forecast margins and financing plan consistency.
- Tax and social compliance: verification of tax filings, social obligations and audit risks.
Our M&A and due diligence services
Due diligence preparation (Vendor DD)
We prepare your company to receive due diligence: account clean-up, data room preparation, vendor financial report and anticipation of investor questions.
Buy-side due diligence
We conduct financial due diligence on behalf of acquirers: target account analysis, risk identification, price adjustments and investment recommendations.
Fundraising support
From financial model preparation to term sheet negotiation, we support founders at every stage of their fundraise. Over 100M EUR raised for our clients.
Business valuation
DCF, market multiples and comparable transactions methods to establish a robust and defensible valuation of your company.
Post-acquisition integration (PMI)
Support in post-acquisition financial integration: accounting system harmonization, reporting consolidation and synergy optimization.
Our advisory process
Initial diagnostic
Audit of your current financial situation, identification of risk areas and definition of the engagement scope.
Data room preparation
Organization and verification of all financial, legal and operational documents. Virtual data room setup with secure access.
Due diligence execution
In-depth analysis of financial data, Q&A sessions with stakeholders, and due diligence report drafting.
Negotiation and closing
Support in price negotiations, post-DD adjustments and guidance through to final signing.
Frequently asked questions
How long does a financial due diligence take?
Duration varies by complexity: 2-4 weeks for a seed/Series A fundraise, 4-8 weeks for an SME acquisition, and up to 12 weeks for more complex transactions.
What does due diligence advisory cost?
Our fees depend on the scope. For fundraising preparation, expect 5,000-15,000 EUR. For a full acquisition due diligence, fees range from 10,000-30,000 EUR.
Can you intervene urgently on an ongoing due diligence?
Yes, we can mobilize a team within 48 hours for urgent situations such as an already-launched investor or acquirer due diligence.
Do you work with companies outside France?
Yes, we support companies in France, Spain and internationally. Our team is trilingual (French, English, Spanish) and masters French (PCG), Spanish (PGC) and international (IFRS) accounting standards.
Let's talk about your project
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