Get an in-depth assessment of a business by engaging an expert to perform financial due diligence services.
We decipher the numbers and ensure that your investment decision is backed by clarity, precision and confidence.
Financial due diligence services help investors and acquisition entrepreneurs understand the drivers of profit and revenue in the business they’re considering buying. This analysis provides a thorough investigation into the financial health of the entity.
It gives you a normalized view of the financials for the historical period, including things like:
Are you considering buying a business? Make sure you do your homework first.
Get started by downloading our free financial due diligence checklist.
This comprehensive checklist has been designed by our team to help you assess all the key financial areas of a business that you’re considering for acquisition.
When it comes to mergers, acquisitions, and significant investment activities, our financial due diligence services stand out.
At Midwest CPA , we recognize the complexities and uncertainties investors and business buyers encounter when diving into a company’s financials. We specialize in offering a comprehensive examination of the financials, ensuring you’re not just looking at numbers but understanding their implications.
With our expert guidance and tailored approach in financial due diligence, we ensure that you get a clear, accurate, and comprehensive view of your potential investment.
When you engage us for financial due diligence services, we follow a 3-part system to make sure you have clear communication throughout the process. We’ll alleviate the stress and provide you with financial clarity at the end. This entire process typically takes between 3-6 weeks to complete.
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Benefit from our financial due diligence services, no matter where your investment interests lie. Because we work 100% online, we’re able to serve clients across the US, and have worked with a number of acquisition entrepreneurs from New York to California. Beyond geographical flexibility, some of the key advantages of partnering with us include:
Our financial due diligence services delves deep, ensuring no stone is left unturned. We’re committed to providing you with a comprehensive view of your potential investment.
With our expertise, we don’t just present numbers; we provide insights. Our analysis will highlight potential risks, opportunities, and areas of concern, ensuring you’re well-equipped to make the best investment decisions.
Your trust is paramount. Rest assured, our findings and recommendations are unbiased, objective, and designed solely to support your investment goals.
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If you’d prefer to book a time in our calendar right now, please click below to schedule an appointment.
The due diligence period is a specified timeframe during which the buyer conducts a thorough investigation of the business’s financials, operations, and other critical areas. It allows the buyer to confirm details, identify potential issues, and decide on proceeding with the acquisition.
Financial Due Diligence is crucial in mergers and acquisitions to identify potential financial risks, validate the information provided by the seller, and determine the true value of the business. It helps buyers make informed decisions, negotiate better terms, and ensure a smooth transition post-acquisition.
Quality of Earnings (QoE) is an essential component of Financial Due Diligence. It assesses the sustainability and quality of a company’s earnings, ensuring they are derived from core business operations and are likely to continue in the future. QoE analysis helps in identifying non-recurring revenues, expenses, and other financial anomalies.
While Financial Due Diligence focuses on evaluating a company’s overall financial health. Tax Due Diligence specifically examines the company’s tax compliance, potential tax liabilities, and opportunities for tax savings. Both are essential in understanding the complete financial picture of a business.
The duration of the Financial Due Diligence services can vary based on the size and complexity of the business being evaluated. Typically, it can range from a few weeks to several months. It’s essential to ensure thoroughness and accuracy, so the process shouldn’t be rushed.
Our typical project takes between 3-6 weeks.
Yes, a Financial Due Diligence can identify hidden or undisclosed liabilities, ensuring a transparent understanding of a business’s financial position but it is not a financial audit.
An audit is a specific kind of engagement that checks if financial statements follow accepted accounting standards (usually GAAP in the US).
On the other hand, financial due diligence tries to find patterns and explain them. It also shows a normal version of certain numbers like earnings before interest, taxes, depreciation, and amortization (EBITDA), seller discretionary earnings (SDE), and net working capital (NWC).
So, even though someone doing financial due diligence might look at audited financials (if available), these two processes are quite different.
Each engagement is different, so contact us for an exact quote.
Most of our projects will cost somewhere between $10-20k. This will vary based on the size and industry of the target company as well as the scope of work required.
We bill half of our fee up front with the second half due with the delivery of our report.
The majority of our clients are buying businesses between $1-10MM.
It is typical for companies under $10MM to have unsophisticated accounting systems. This makes bad records very common.
We are equipped to handle these challenges and utilize whatever is available to determine the true earning power of the business you are buying so that you have maximum clarity.
Most of our clients are purchasing businesses between $1-$10MM. However, even if your deal is smaller than that reach out and we’ll let you know if we can help.
Here’s something most young entrepreneurs don’t realize:
The year you buy a business is often one of your lowest taxable income years, which creates a rare tax planning opportunity.
Instead of just surviving year one, you can use it strategically, potentially reducing your lifetime tax liability by making one smart move: a Roth conversion.
Let’s break it down.
Operating a small business from home offers flexibility, convenience, and meaningful tax advantages. One of the most valuable benefits available to U.S. small business owners is the home office deduction. However, while the deduction can lower taxable income, it must be handled carefully. Misunderstanding the rules, miscalculating expenses, or failing to document properly can create unnecessary IRS scrutiny and financial consequences.
Many business owners either overclaim the deduction or avoid it entirely out of fear. The reality is that the IRS allows this deduction when it is calculated correctly and supported with proper records. Understanding the most common home office tax deduction mistakes
As a small business owner, tax season can be stressful, especially if you need extra time to organize your paperwork. Many entrepreneurs assume that filing a business tax extension payment deadline for small business automatically gives them more time to pay what they owe. Unfortunately, that’s not true. Understanding the difference between filing and payment deadlines is critical to avoid costly IRS penalties and interest. So, what is a business tax extension? A tax extension is a request to delay your filing deadline, not your payment deadline. For most businesses, this involves submitting IRS Form 7004 (or Form 4868 for sole proprietors) by your original due date so you get up to six extra months to submit your tax return. It’s a lifeline for busy entrepreneurs, but don’t confuse it with more time to pay what you owe.
