Financial Buy-Side Due Diligence

Buy-Side Due Diligence Focused on Deep Analysis, Risk Assessment, and Deal Security

In-depth buy-side due diligence to support confident decision-making in any transaction
Clear assessment of risks and opportunities within the target company and potential growth opportunities
Structured financial due diligence (FDD) with a focus on data quality, management insights, and the business plan
Evaluation of compliance, processes, and key financial KPIs to increase deal certainty supported by financial reporting
Contextualization of all due diligence findings in relation to the deal structure and your overall investment criteria

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Why Buy-Side Due Diligence Is Essential

Whether you’re a mid-market company, a corporate, or an investor, a thorough due diligence review is the central success factor in any acquisition or m&a transaction. It reveals how solid the target company truly is, highlights both opportunities and threats, and provides the data you need for a reliable valuation and investment decisions. Conducting due diligence early reduces uncertainty and strengthens your position throughout the business transaction process.

Financial Clarity

Structured financial due diligence exposes how reliable the financial health, cash flows, and KPIs really are, while identifying red flags and supporting a fair, data-driven view of financial performance identifying the target’s underlying risks.

Business Plan Assessment

We evaluate whether the plan, revenue drivers, and cost structures are realistic and whether the management presents strategic assumptions that withstand a rigorous buy-side due diligence process.

Identifying Risks and Opportunities Early

Using proven analytical methods, we assess all relevant deal factors to clearly surface potential weaknesses and growth potential.

Ensuring Compliance and Governance

In regulated industries, reviewing compliance and governance is critical. We identify potential issues early, ensuring the due diligence process remains aligned with accounting standards and core accounting principles.

Understanding Market and Industry Context

By combining operational and strategic insights with financial analysis, we assess the market position, competitive advantage, and long-term outlook of the target business within its industry.

A Strong Foundation for Corporate Decisions

Whether it’s a joint venture, a merger, or traditional M&A deal, our buy-side due diligence provides the foundation for secure decisions, successful deals, and long-term strategic planning.

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Structuring a Successful Buy-Side Due Diligence Process

The duration of each project depends on its individual scope and requirements and therefore cannot be generalized. The timeline below serves as an example to illustrate our approach and provide a better understanding of the typical phases. Your specific project schedule will be predefined together during the initial planning stage.

A well-executed financial buy-side due diligence follows a clear, disciplined process that surfaces risks early and supports sound decision-making. Each step ensures that assumptions are challenged, opportunities are assessed, and critical aspects of the target company are thoroughly analyzed. The exact timeline varies depending on the size, industry, and complexity of the transaction.

Week 0 to 1:

Kickoff, creation of the request list, initial risk overview, and first draft of the key financial metrics.

Week 1 to 2:

Data collection, initial analyses, and first insights presented through dashboard previews.

Week 2 to 3:

Deep-dive work on earnings quality, working capital, debt, and key performance indicators.

Week 3 to 4:

Drafting the report, providing contract inputs, addressing management questions, and finalizing priorities for the first hundred days.

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How We Bring Clarity to Your Deal

A quality-of-earnings report, including EBITDA bridge and detailed adjustments
Revenue quality analysis by product, customer, channel, and cohort
Working capital analysis with normalization, seasonality review, and target-level definition
Overview of net financial debt and related items, including supporting evidence
A tailored set of key metrics and definitions aligned with the specifics of the transaction
Review of accounting standards and analysis of unusual or non-recurring items
Assessment of revenue recognition, cut-off procedures, and provisions
Insights into cohorts, retention, and customer churn where relevant
Cost-per-unit and margin analysis at a segment or product-line level
Inputs for SPA design, including definitions, thresholds, and pricing mechanisms
Management of data requests and full tracking of all analytical workstreams
Management interviews and reference checks where appropriate
A 100-day plan with actionable measures to drive immediate value creation

Who Benefits Most from Our Buy Side Due Diligence

Private equity firms and family offices executing mid-market acquisitions
Corporate development teams evaluating add-ons, strategic investments, or majority stakes
Cross-border mandates in Germany and the United States, with reporting available in German or English and extensive experience in cross-border transactions

Tombstones

Here is a list of a few Buy-Side Financial Due Dilgience projects we successfully worked on over the past:

Our Digital Tools

A reliable assessment is only possible when data, processes, and assumptions are evaluated through structured, technology-driven methods. We use modern tools, robust analytical frameworks, and secure data architectures to ensure every phase of the buy-side due diligence is precise, compliant, and corporate-ready.

Microsoft 365 environment with role-based access and full auditability
Data room preparation and document management to streamline the sales process
Dashboards designed for both management teams and M&A professionals

Key Areas of the Due Diligence Review

EBITDA Analysis: We assess the quality, sustainability, and adjustments of EBITDA to provide a realistic view of the company’s operating profitability.
Working Capital: We analyze working capital trends, seasonality, and efficiency to clearly understand liquidity needs and structural patterns.
Financial Debt: We evaluate financial debt, leasing arrangements, and off-balance-sheet items so you gain a complete picture of all financial obligations.
Balance Sheet and Cash Flow Analysis: We examine the balance sheet structure and cash flows to realistically assess stability, risks, and cash conversion.
Planning and Forecasts: We review business plans, assumptions, and forecasts to ensure their plausibility, resilience, and strategic consistency.

Why Radial?

Big Four–level quality combined with the speed and flexibility of a boutique firm
Leadership by former Big Four professionals, a bilingual team, and a private-equity mindset
Data-driven delivery with dashboards, models, and governance structures that you fully control
Proactive communication and clearly defined responsibilities that ensure measurable progress every week, helping you avoid surprises

Gain Full Transparency Into Risks and Opportunities

You are preparing for a deal and want to ensure every number, every assumption, and every risk is evaluated with clarity?
Then now is the time to structure your buy-side due diligence professionally and thoroughly.

We support buyers with structured analysis, clear reporting, and real transaction expertise enabling you to make decisions based on facts, not assumptions. Let’s talk and determine how we can best support you in the next step of your acquisition process.

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Frequently Asked Questions

What sets you apart from traditional FDD advisors?

We combine classic financial analysis with fast dashboards and modern data modeling. You immediately see the key drivers, anomalies, and seasonality patterns. The results can be used directly for contract negotiations and for your post-acquisition onboarding.

When should we bring you in?

Ideally early as soon as you receive initial information about the target or once a Letter of Intent has been signed. This allows you to define data requests and analytical priorities correctly from the start.

Are your reports bank-ready?

Yes. Our reports are prepared in Germany by Radial GmbH Wirtschaftsprüfungsgesellschaft and accepted by all major banks, supporting your m&a transactions and financing discussions with reliable financial statements analysis and consistent accounting principles.

What business models do you cover?

Machinery and equipment manufacturing, SaaS, project-based businesses, e-commerce, consumer and industrial goods, and more. We tailor the driver logic and KPIs to your specific business model.

How long does the project take?

Typically three to four weeks from kickoff to the final report. Complex m&a deals or broader due diligence services may require additional time, depending on data, scope, and transaction process dynamics.

What data do you need?

Financial statements, management reporting, transaction-level booking data, aging lists for payables and receivables, payroll files, leasing agreements, debt schedules, and key contracts. We prepare a detailed request list for you.

Do you work with other advisors?

Yes. We coordinate closely with your legal, tax, and strategy advisors and provide definitions and inputs for contract negotiations.

How can we update or expand dashboards in the future?

We design scalable dashboards and offer support as your reporting requirements evolve.

What are the main objectives of buy-side Financial Due Diligence?

The goal is to deliver a complete, fact-based picture of the target company and create a secure foundation for your decision. This includes:

Risk Assessment: Identifying financial, operational, and structural risks that may affect the deal or future performance.
Opportunity Identification: Uncovering potential efficiencies, upside drivers, and value-creation levers relevant to buyers.
Valuation Support: Analyzing financial performance, earnings quality, and key KPIs to underpin enterprise value.
Contract Negotiation: Providing key inputs for pricing, SPA design, and mechanisms such as closing accounts or locked-box models.
Sustainable Earnings: Assessing whether revenue, EBITDA, and cash flows are durable and how stable future earnings streams are likely to be.

Compared with vendor due diligence, which is commissioned by the seller, buy-side due diligence focuses more heavily on independent validation, critical review, and the specific interests of the buyer.

Can you provide thresholds and adjustments for SPA pricing mechanisms?

Yes. We deliver all definitions, metrics, and analyses required for negotiations and lender discussions.

Do your analyses also include reports and implementation plans for day one?

Yes. You receive an initial reporting roadmap and actionable measures for rapid value creation starting from day one.

What our customers say

Radial has helped us make great strides in our efforts to digitize financial reporting and increase transparency. I look forward to the next steps, in which we will once again be relying on Radial for support.

Thorsten Preiss, DETAX GmbH

Make the Right Acquisition Decision With Experience and Perspective

A thorough assessment of the financials determines whether a deal truly aligns with your goals, whether risks remain manageable, and whether you can move confidently as the buyer. If you need transparency, speed, and real financial certainty throughout the process, we support you with experience, technology, and deep expertise. Reach out to us and secure a buy-side due diligence that gives you as a buyer or investor genuine clarity.

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