Ondřej Šnejdar
Partner, Head of Advisory • Audit
BDO provides financial due diligence services for acquisitions, disposals, mergers and other strategic transactions.
We help investors, buyers and sellers understand a company’s underlying financial performance and identify factors that may affect its value, purchase price and transaction terms.
Assessment of Financial Performance and Key Transaction Parameters
Our goal is to provide clients with reliable information to support transaction decision-making and purchase price negotiations.
In addition to historical financial performance, we focus on the quality and sustainability of revenue and profitability, cash flow generation, working capital, debt and other financial risks.
We translate our findings into specific recommendations for company valuation, the design of purchase price mechanisms and the negotiation of relevant provisions in the transaction documentation.
We tailor the scope of financial due diligence to the nature of the transaction, the industry, the business model and the client’s specific needs.
We focus on areas that are critical to assessing the value of the company and making informed transaction decisions.
Key Areas of Financial Due Diligence
In both domestic and cross-border transactions, we focus on key financial areas
that may affect the value of the company, the purchase price and the terms of the transaction.
Buy-side & sell-side support
Quality of earnings and profitability
Cash flow and working capital
Identification of financial risks
Transaction negotiation and purchase price support
Financial plans and future performance
Global reach and multidisciplinary synergies
Post-acquisition support
Buy-side & sell-side support
- We help buyers assess the financial condition of the target company, verify the sustainability of its performance and identify key risks and opportunities affecting the value of the transaction.
- For sellers, we prepare an independent report that provides potential investors with a comprehensive view of the company's financial performance and position, increases transparency in the sale process and supports confidence in investment decision-making.
- As part of so-called “exit readiness”, we help sellers prepare the company for the transaction, identify issues that may affect the transaction process or valuation, and take the necessary measures in a timely manner to maximize the company's value and facilitate the sale process.
Quality of earnings and profitability
- We analyze the revenue structure, margin development and sustainability of financial performance.
- We assess the concentration of revenue and profitability across customers, products and markets and identify potential dependencies and risks.
- We assess the quality of earnings, identify one-off, non-operating and other non-standard items, and evaluate their impact on normalized EBITDA and sustainable profitability.
Cash flow and working capital
- We analyze the company's ability to convert reported profitability into operating cash flow and identify factors affecting cash generation.
- We assess historical trends, seasonality and the normal level of working capital, as well as the key factors affecting liquidity and operating financing.
- We identify non-standard or one-off working capital items that may affect the determination of the purchase price.
Identification of financial risks
- We identify potential liabilities, hidden costs and other matters that may not be fully reflected in the financial statements.
- We assess operational and financial risks that may affect the company's value, the transaction structure or the terms of its completion.
- We evaluate the potential impact of identified risks on the purchase price and propose how they should be reflected in the purchase price mechanism or transaction documentation.
Transaction negotiation and purchase price support
- Based on our analysis of financial data and identified adjustments, we help structure the purchase price mechanism and define its key parameters.
- We support clients in determining net debt, the normal level of working capital and other items included in the purchase price calculation.
- We provide assistance with the purchase price calculation and the negotiation of related provisions in the transaction documentation.
Financial plans and future performance
- We assess the realism of financial plans and their consistency with the company's historical performance.
- We review key business and financial assumptions, including expected developments in revenue, margins, costs and investments.
Global reach and multidisciplinary synergies
- Thanks to BDO's international network and the experience of our transaction teams across more than 150 countries, we effectively support both domestic and cross-border transactions.
- We ensure a coordinated and consistent approach across jurisdictions.
- We work closely with colleagues from tax, legal and other specialist teams to provide clients with a comprehensive view of the target company and the key transaction risks.
Post-acquisition support
- We help clients translate due diligence findings into specific post-transaction actions and set priorities for the integration process.
- We support the implementation of financial reporting, control mechanisms and financial management processes within the newly formed group.