Financial Due Diligence - FAQs

What does a typical FDD engagement cover?

Our FDD work covers two core areas: a financial and commercial review, and an operational and governance review. The financial review focuses on revenue quality, ARR validation, gross margins, unit economics, debt, and liabilities. The operational review covers processes, systems, governance, working capital, and compliance risks. Every engagement is scoped to your specific situation - we don't use a one-size-fits-all approach.

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What do you deliver at the end?

A structured written report covering an executive summary with key findings and red flags, revenue quality analysis, cost base and margin assessment, balance sheet and working capital review, forward-looking assumption review, governance and compliance risk flags, and commercially grounded recommendations for your IC. We also offer a

debrief call to walk through findings and answer questions.

How do you approach the report - what's the format?

Our reports are written to be decision-useful, not exhaustive. We focus on what matters for the investment decision - clear risk flags, key sensitivities, and practical recommendations - rather than producing a lengthy document that buries the conclusions. We've found this format directly supports IC discussions.

What information do you need access to?

Typically: management accounts for the last 2-3 years, the financial model, board packs, contracts with key customers and suppliers, details of any debt or liabilities, and access to the finance team for questions. We work with whatever is available in the data room and flag any gaps as part of our findings.

Can you work to tight timelines?

Yes - we're experienced working to investment timelines and adapt to the pace a process requires. We're happy to discuss your specific timeline on a call.

Do you speak directly with the management team?

Yes, where helpful. Management calls are often useful for clarifying assumptions, understanding the revenue model, and assessing the finance team's capabilities. We align with you on what's appropriate before making contact.

How do you handle confidentiality?

We operate under NDA for all engagements. All materials and findings are kept strictly confidential and are only shared with the parties agreed at the outset.

Can you support both pre-investment diligence and portfolio reviews?

Yes - we support both. Pre-investment FDD is commissioned ahead of a new investment decision. Portfolio reviews are used by existing investors who want an independent view of a company's financial health, reporting quality, or readiness for its next round. See our Portfolio Company Reviews page → for more detail.

Do you work alongside legal or other advisors?

Yes - we regularly work alongside legal counsel, tax advisors, and other deal team members. We focus specifically on the financial and commercial analysis, and integrate with the broader process as needed.

What size of companies do you typically review?

We work with companies at any stage and across all sectors - from early-stage businesses through to established growth companies. We're comfortable with both simple and complex business models

Who commissions your FDD work?

Typically the lead investor or a fund conducting diligence on a potential investment. We've worked with venture capital funds, growth equity investors, corporate investors, and strategic acquirers. 

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Ready to discuss a specific engagement? Contact us