London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

See the wood

Due Diligence is an involving task, where the old idiom ‘…can’t see the wood for the trees’ is true.

It is very easy to get immersed in the detail of a transaction – checking that balance sheets balance, existence of assets, invoices are not shredded etc etc. However most value from the DD process is derived from standing back and pondering – is my client getting a good deal?

Before you embark on detailed financial due diligence, I wholeheartedly recommend you spend half a day with your accountant and your offer letter (or heads of agreement). Not only will your accountant be able to independently appraise the all important headline figures associated with the transaction, but this will also allow you to identify risk areas together – ensuring a more focused DD process.

Oh and by the way, it is useful to review the ‘wood’ element before a not insignificant fee has been agreed with your accountants and lawyers.



Date: 22nd August, 2007
Author: Gary Farnes


Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.


Michael Lapham shortlisted in the Money Management Financial Planner Awards 2017…

#Farming trading as a #partnership potential #tax pitfalls and tips @mercerhole Phil Fenn insight @accountancylive



For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn