If you are reviewing an FDD report template or a finalized deliverable, maximize its utility by focusing on these strategic areas: Renegotiating the Purchase Price
: A review of past and required CapEx is performed, distinguishing between spending for maintenance and spending for future growth, which helps determine the investment needed to sustain the business.
Extraordinary events that will not happen under new ownership.
The most valuable section for negotiation is often the EBITDA bridge. KPMG typically categorizes adjustments into: financial due diligence report kpmg pdf
The scope of the work and basic transaction thesis.
An analysis of the company's business model, customer concentration risks, and product-line profitability.
This section is crucial for determining the "Cash-Free, Debt-Free" purchase price. KPMG reports are rigorous here to prevent the seller from manipulating working capital before closing (a tactic known as "window dressing"). If you are reviewing an FDD report template
KPMG analysts search for potential financial "landmines," including:
These publications are generally available for free download from KPMG's global website (kpmg.com) and individual member firm websites. It is important to note, however, that and are not publicly available.
While every transaction is unique, a standard KPMG style FDD report centers on three fundamental financial pillars: 1. Quality of Earnings (QofE) KPMG typically categorizes adjustments into: The scope of
The report typically includes benchmarking analysis, comparing the target company's key financial and operational metrics against industry peers to identify areas of strength and underperformance.
This article provides a comprehensive guide to understanding what a financial due diligence report from KPMG entails, its key components, and how to access official information about these reports in PDF format.
KPMG analysts conduct a thorough review to determine the sustainable profitability of the company. They adjust reported EBITDA to eliminate one-off, non-recurring items or to reflect standardizing adjustments. 3. Net Debt and Debt-like Items