Sell-Side Tax Due Diligence & Advisory

Tax Factbook or Vendor Tax DD for a Successful Company Sale

  • A Tax Factbook presents the tax related facts of your company in a structured and efficient way and provides buyers with a reliable basis for their analysis

  • A Vendor Tax DD includes an additional review to assess and quantify material tax risks of the target

  • A clearly defined sell side tax advice process reduces buyer follow up questions, increasing transparency, and ensuring a well managed sale process

  • We deliver a report that serves as the key sell side document to make the buyer’s tax DD process more efficient

  • The result is greater process certainty, a stronger negotiating position, and fewer tax related surprises at the finish line

Get in touch with us today
Power BI Dashboard

Radial Consulting known from:

Business Punk Logo
Business Insider Logo
Finance Magazin Logo
KSI Logo
Börsen Zeitung Logo

Why Sell-Side Tax Due Diligence & Advisory Is Essential

An unprepared sale process leaves buyers room to make their own, often more conservative, assumptions about your tax position. A structured Tax Factbook or Vendor Tax DD puts you in control of the narrative and shortens the path to closing.

Buyer Ready Tax Story

A Tax Factbook or Vendor Tax DD that presents tax facts clearly and consistently, so buyer DD becomes faster and more predictable.

Less Follow Up, More Confidence

Proactive identification of likely buyer questions and evidence preparation to reduce iteration at the finish line.

Compliance and Documentation Quality

Assessment of tax filing quality, documentation completeness and responsiveness, strengthening the credibility of your sale process.

Risk Framing Where Needed

Where requested, assessment of material tax risks so you can adapt your sale narrative and strategy early.

Process Control

Structured workstreams and disciplined data room management to keep timelines and reduce disruption to day to day operations.

Negotiation Leverage

A stronger negotiating position through transparent, evidence backed deliverables and fewer last minute surprises.

Bildschirm Mockup

Structuring a Successful Sell-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 sell-side tax due diligence & advisory 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 and request list.

Week 1 to 2:

Data collection, interviews and initial analyses.

Week 2 to 3:

Deep-dive workstreams and drafting of key findings.

Week 3 to 4:

Finalization and management review.

Week 4 to 6:

Data room validation, buyer Q&A and contractual support

How We Bring Clarity to Your Deal

  • A buyer ready Tax Factbook or Vendor Tax DD that structures tax facts and, where applicable, tax risk views

  • Evidence backed compilation of key tax positions, including filings, audits, correspondence, rulings and positions

  • Identification of potential buyer questions and proactive alignment on fact patterns

  • Where requested, assessment of material tax risks with quantified or framed outcomes

  • A consistent narrative that supports a credible sale process and accelerates buyer DD

  • Inputs for SPA discussions from a sell side perspective where relevant

  • Management of the data room and controlled response process to buyer Q&A

Who Benefits Most from Our Sell-Side Tax Due Diligence & Advisory

  • Sellers who want a buyer ready tax narrative and fewer DD surprises

  • Management teams that need process control with limited disruption to day to day operations

  • Deal teams that want a stronger negotiating position through transparency and evidence

Tombstones

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

Transaction - Tombstone 1
Transaction - Tombstone 2
Transaction - Tombstone 3
Transaction - Tombstone 4
Transaction - Tombstone 5
Transaction - Tombstone 6
Transaction - Tombstone 7
Transaction - Tombstone 8
Transaction - Tombstone 9
Transaction - Tombstone 10
Transaction - Tombstone 11
Transaction - Tombstone 12
Transaction - Tombstone 13
Transaction - Tombstone 14
Transaction Tombstone 17
Transaction Tombstone 16

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

Radial Consulting Logo

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.

Schedule an appointment
Wolf-Heinrich Werling

Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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

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

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.

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

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

What our customers say

Thorsten Preiss
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.