Due Diligence for Investors

Independent Financial, Tax & Legal Diligence Before You Invest

Before committing capital to a target company, investors need an independent, evidence-based assessment of what they are actually buying into — not just what the founders present. Financial statements can look clean on the surface while hiding compliance gaps, contingent liabilities, or unsustainable revenue quality underneath.

We conduct thorough financial, tax, and commercial due diligence on target companies for investors and acquirers, uncovering red flags, validating financial claims, and providing a clear, evidence-based report to support the investment decision and negotiation.

Our Due Diligence Services

Financial Due Diligence

Verifying the quality of earnings, working capital trends, and accuracy of the target's historical financial statements.

Tax Due Diligence

Reviewing GST, income tax, TDS, and other tax compliance history to identify exposures and contingent liabilities.

Legal & Compliance Diligence

Coordinating review of corporate records, material contracts, litigation, and regulatory compliance under applicable laws.

Cap Table & Corporate Structure Review

Verifying the accuracy of the target's cap table, prior fundraising terms, and corporate approvals obtained.

Working Capital & Debt Analysis

Analysing net working capital trends and existing debt terms to assess post-investment cash requirements.

Red Flag Report & Negotiation Support

Summarising key findings and risk areas to support valuation adjustment or deal term negotiation.

What Due Diligence Typically Uncovers

Revenue recognised earlier than actually earned, inflating apparent growth or margins
Related-party transactions that are not conducted on arm's length terms
Pending or undisclosed tax notices, assessments, or litigation exposure
Working capital deterioration masked by one-time adjustments or timing of collections
Cap table discrepancies, including undisclosed convertible instruments or option grants
Key customer or supplier concentration risk not evident from headline financial statements

Frequently Asked Questions

What is the difference between financial and tax due diligence?

Financial due diligence focuses on the accuracy, quality, and sustainability of the target's reported financial performance and position, while tax due diligence specifically examines compliance history and potential exposures under GST, income tax, TDS, and other tax laws, including risks that may not appear directly on the financial statements as recorded.

How long does a typical due diligence exercise take?

For a mid-sized target company, financial and tax due diligence typically takes 2 to 4 weeks once complete data room access is provided, though the timeline can extend significantly if the target's records are disorganised or if material issues require deeper investigation.

What is quality of earnings analysis?

Quality of earnings analysis examines whether reported profits are sustainable and representative of ongoing business performance, by adjusting for one-time items, non-recurring revenue, related-party transactions, and aggressive accounting choices, to arrive at a normalised earnings figure that better reflects the business's true run-rate.

Can due diligence findings affect the deal valuation?

Yes, commonly. Findings such as unsustainable revenue, contingent tax liabilities, or working capital shortfalls are frequently used to negotiate a lower valuation, request specific indemnities, adjust the deal structure, or in some cases build in an escrow holdback against identified risks.

Who typically requests due diligence — the investor or the company?

Due diligence is almost always commissioned by the investor or acquirer, since it is meant to independently verify the target company's representations before capital is committed, though the target company is responsible for cooperating and providing complete, accurate data room access.

Know What You're Investing In

From financial to tax diligence, we give investors and acquirers a clear, evidence-based view before capital is committed.

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