This section analyzes how "sticky" the customers are. It often includes:
A financial due diligence (FDD) report from a "Big Four" firm like KPMG is the gold standard for assessing the financial health of a target company during a merger or acquisition. These reports go far beyond standard audits, focusing on the "quality of earnings" and future scalability rather than just historical compliance. financial due diligence report kpmg pdf
Revenue from a discontinued product line or a legal settlement. This section analyzes how "sticky" the customers are
Is the target company a or a manufacturing firm ? Do you need help calculating normalized working capital ? financial due diligence report kpmg pdf
KPMG analysts look for non-recurring items that inflate or deflate profit. Common adjustments include:
This is the most critical section for stakeholders. It highlights: