Transaction support & due diligence

Due Diligence

Due Diligence

The due diligence process provides a detailed review of a target business from a financial and commercial perspective, adding value by focusing on the key issues likely to affect the decision to proceed with the acquisition and those factors which affect the price. 

We have developed a tailored due diligence methodology that enables us to provide a value added service by focusing on the key issues relating to your transaction, the target business and the impact of the acquisition on your business.  Our methodology ensures that we:

  • Identify the key issues. These key points will assist you in the decision as to whether to continue with the acquisition through the identification of deal breakers.  The identification of these issues is also critical in enabling you to negotiate the final consideration to be paid for the business;
  • Evaluate the purchase price through a detailed review and appraisal of financial projections and the assumptions underpinning the projections;
  • Review the implications of the proposed transaction structure and advise on alternative structures which may be more attractive from your perspective as a potential purchaser; and
  • Advise on the financial, taxation and commercial aspects of the purchase agreement.  Such agreements often contain financial mechanisms and clauses which can impact upon the purchase price.  We work closely with your legal advisers to ensure that the purchase agreement includes the necessary protection that you require when buying a business.

The scope of our due diligence work is tailored for each engagement to ensure that our work is focussed on the identification and quantification of key issues that may impact on the target business, its marketplace and your consolidated business post acquisition.


Due Diligence expert

Glyn Yates
National Head of Corporate Finance - Melbourne

E: [email protected]
T:+61 3 9286 8167

Due specialist

Justin Audcent
Director - Perth

E: [email protected]
T:+61 8 9261 9287

Due Diligence questions? Get in touch

Tim Goodman
Director - Sydney

E: [email protected]
T:+61 2 8226 4552

Due Diligence advice

Our financial due diligence team comprises specialists who are deeply committed and experienced in providing:
Specialists in Due Diligence

  • Due diligence for investors, banks and private equity houses (e.g. when considering funding a management buy out);
  • Due diligence for corporate acquirers, in which case we report to the acquirer and, where appropriate, their funders;
  • Vendor due diligence, this is commissioned by a vendor, but remains a robust independent review upon which a purchaser can ultimately place legal reliance. It identifies potential issues and reduces the probability of these being used by a purchaser to reduce the price. This is because they can be presented in a managed way by the vendor, rather than being identified by the purchaser and used as a negotiating tool against the vendor.

The specifics of the deal always determine the scope of financial due diligence. However, the process typically includes:

  • An in depth analysis of underlying historic performance, cash flows, assets and liabilities;
  • A critique of management's forecasts, including the working capital requirements of the business;
  • A review of the underlying financial systems and controls; and
  • Analysis of the taxation position of the business.

Our reports will also include:

  • A summary of the key issues that have been identified by our work; and
  • Our views on the associated risk and implications for the deal, including integration and other post deal issues where appropriate.
Insights for Due Diligence

Positive investment outlook for the food and agribusiness sector

22 November 2022
The quality of our produce, strong biosecurity standards, and low geopolitical risk make Australia (and New Zealand) an investment destination of choice.

Should you raise your prices to keep up with inflation?

10 August 2022
I was in a retail store the other day and was surprised to see a notice taped to the counter. It said: “We are proud that we haven’t raised our prices, even in light of current events.”

Valuations for Family Law Purposes – Common Issues

17 May 2022
The first step in any family law property settlement is to identify and value the assets belonging to each party. A business is an asset and its value either needs to be agreed upon between the parties or valued by a qualified expert.

Fourth control premium study by RSM Australia reveals control premiums have risen sharply

15 September 2021
RSM Australia (RSM), one of Australia’s largest mid-tier accounting firms, has revealed the findings of its latest control premium study, undertaken in partnership with Curtin University.

Business Exit Strategy Webinar Series | July - August 2021

12 August 2021
As every business owner knows, an exit strategy should form part of every successful business plan.  Reasons for the exit can vary from family succession, increase in competition, changes in health or life goals, or decreasing profits. Irrespective of the reason, the necessary preparations need to be completed for what at times can become a lengthy process involving financial, legal, regulatory and operational obligations. RSM Australia partnered with Colin Biggers & Paisley Lawyers (CBP) to deliver an informative webinar series delivering key details for consideration by any owners looking to exit their business.

Changes to Independent Expert Reports for Performance Shares

29 March 2021
On 28 August 2020, the Australian Securities Commission (ASX) released a revised Guidance Note 19 Performance Securities (GN19). 

The impact of COVID-19 on the work of independent experts

14 May 2020
The significant volatility in local and global equity markets over the last few months clearly demonstrates the impact that COVID-19 is having on Australian companies.

Treatment of exploration costs in presenting pro forma net assets

30 April 2020
Public documents issued to shareholders and potential investors, such as IPO prospectuses and documents seeking shareholder approval for a proposed acquisition or other transaction – will usually include a pro forma statement of net assets, in order to illustrate the impact of the proposed transaction on the company’s financial positi

Debt free, cash free transactions – the devil is in the detail

6 January 2020
Most private M&A transactions are undertaken on a debt free, cash free basis. This means the vendor pays out any debt at completion and keeps any remaining cash in the business (typically by way of a pre-completion dividend).

10 tips to make your business transaction-proof

13 September 2018
Are you and your business ready to take the next step?

Directors shouldn’t second-guess asset values

6 July 2016
Regardless of their size, past acquisitions are coming back to haunt the financial statements of a growing number of ASX-listed companies.