Due diligence

At ICFG we can deliver not only a transaction service but also a full range of services supporting shareholders and CEOs in the execution of their business and financial strategies.

As part of those services, ICFG members provide in Europe due diligence services specially in the areas of Financial due Diligence and Commercial Due Diligence.

Due diligence is a vital part of any transaction process. It stress tests the assumptions that the offer terms are based on and gives the buyer or investor increased comfort through an independent expert assessment of the risks and opportunities of the proposed transaction. It helps reduce the risk of post-transaction surprises as well as providing a sound base from which to plan the post-deal integration strategy and growth plan.

Our due diligence team uses its collective analytic and commercial acumen to add value to each and every assignment for its clients. It’s not just about identifying negative features and potential roadblocks to a successful completion but our approach is to both identify potential issues and give practical advise and solutions.

Whilst our reports address our clients requirements in a clear and concise format, because they are kept fully informed of deal critical issues early in the process, the implications and suggested solutions would have been discussed with them prior to receiving our report.

For Financial Due Diligence the centre of expertise lies with our British colleagues of Henley who enjoys an award-winning team of financial due diligence specialists, who apply their strong experience and capabilities with a fully partner-led and hands-on advisory approach.

Our core due diligence services are:

Financial Acquisition due diligence

We assist corporate acquirers, private equity investors and banks and other debt providers with their acquisition and investment process.

We will provide a thorough analysis of the company’s financials including historic performance, detailed forecasts, working capital requirements, tax analysis and a review of financial systems and controls. Whilst we will tailor the scope of our work to meet our client’s precise requirement, we will typically conclude on the level of maintainable profits of the business, the achievability of the forecast trading, assist in optimising negotiations around free cash and working capital and make recommendations for matters which the business should address both prior to, and after, completion.

As due diligence providers, we do not shy away from our responsibility to provide advice both verbally and in writing, rather than simply present the facts for our clients to form their own conclusions.

Financial Vendor due diligenceVendor due diligence can be a critical part of a disposal process and should be considered as an option by a vendor or a company seeking investment.

It provides potential acquirers with a detailed assessment of the business which will enable them to intimately understand the company much earlier in the process so that they can make informed decisions. It also allows the vendor to manage key selling messages and any potential issues.

By presenting an acquirer with a robust independent assessment of the business before granting exclusivity, the probability of a price reduction or renegotiation of key commercial acquisition terms significantly reduces.

Winning Due Diligence Team of the Year at the Thames Valley Deal Awards is testament to the quality and reputation of our team’s market leading position in the UK.

Commercial Due Diligence

When adressing complex international markets pledged by multiple regulation systems as well as a constant flow of innovation, grasping a global understanding of the international scene is of paramount importance to assess the opportunity of a transaction and the risks associated.

The members of ICFG are particularly active in two areas of commercial due diligence :

  • Energy and circular economy markets which is handled by the teams of ICFG in Switzerland whose experience in the industry is unequaled.
  • For Pharmacy situations, our Spanish member is the most active to provide acute visions on new drugs development and FDA/EMA controlled markets.

As transactions practitioneers all the reports produced share the same mindset of executive efficiency with a focus on what really matters, a typical output expected from a partner led practice.