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.
Adjusting for the full-year impact of a mid-year acquisition or price hike. 3. Quality of Revenue
Potential "debt-like" items that might not be on the balance sheet but impact the final payout. 2. Quality of Earnings (QofE) financial due diligence report kpmg pdf
KPMG reports help buyers identify hidden liabilities, such as: Unfunded pension obligations. Change-of-control bonuses. Customer deposits or deferred revenue. Aged accounts payable. Why Investors Search for KPMG FDD Templates
Many professionals search for "KPMG financial due diligence report PDF" to use as a benchmark for their own internal reporting. Using a Big Four framework ensures: A financial due diligence (FDD) report from a
A summary table showing the bridge from "Reported EBITDA" to "Adjusted EBITDA."
Ultimately, a financial due diligence report is a negotiation tool. If KPMG identifies $1M in "non-recurring" revenue, the buyer may be able to argue for a significant reduction in the purchase price based on the agreed-upon valuation multiple. Quality of Earnings (QofE) KPMG reports help buyers
Providing a data-backed foundation for the final "Enterpise Value to EBITDA" multiple. The Strategic Value of FDD
Is the target company a or a manufacturing firm ? Do you need help calculating normalized working capital ?