Financial Due Diligence
Let the buyer beware — financial due diligence for acquisitions and mergers
Philip Barnes & Co produce financial due diligence reports for business purchases, mergers and partnerships — getting behind the balance sheet to give you the confidence to make informed decisions.
What we do
Buying a business is one of the biggest financial decisions you will make
The numbers on a balance sheet rarely tell the whole story. Philip Barnes & Co, Chartered Accountants in Tamworth and Uttoxeter, produce financial due diligence reports that go deeper — assessing true financial viability, surfacing hidden risks, and giving you a clear picture before you commit.
Whether you are acquiring a business outright, entering a merger, or forming a new partnership, our report is structured to answer the questions that matter most to you and your advisers.
Philip Barnes & Co are members of the ICAEW. That professional standing means our reports carry weight with lenders, investors and legal teams throughout the deal process.
What the report covers
Six areas every buyer needs to understand
Our due diligence reports are built around the six questions that most often determine whether a deal should proceed — and on what terms.
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01
True financial viabilityWe assess whether the target business is genuinely profitable and sustainable — not just whether the headline figures look attractive. Normalised earnings, working capital trends and cash generation are all examined.
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02
Financial risk profileEvery acquisition carries risk. We identify concentrations — customer dependency, supplier reliance, covenant exposure — so you understand what you are taking on before the deal closes.
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03
Inherited fraud riskFraud and misrepresentation can be buried in a set of accounts. Our review looks for the warning signs — unusual transactions, related-party arrangements, and inconsistencies between management accounts and statutory filings.
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04
Off-balance-sheet issuesContingent liabilities, operating leases, pension obligations and undisclosed guarantees can materially change the value of a deal. We surface these before they become your problem.
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05
Deal negotiation intelligenceOur findings give you a factual basis for price negotiation, earn-out structuring, and warranty and indemnity discussions. Buyers who commission due diligence consistently achieve better deal terms.
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06
Finance structuring optionsLenders and investors need to understand the target's financial position before they commit. Our report is structured to support funding applications and to inform the most appropriate mix of debt and equity for the acquisition.
"John Clark and his team have advised on, and managed all areas of this transition… I would highly recommend Philip Barnes & Co."
"Philip Barnes & Co have looked after my accounts and tax affairs for more than 7 years, and during that period, I have saved a significant amount of tax, thanks to the restructuring and tax planning advice I have received."
Rob Rock — Golfing Tour Professional
"We have been a farming client of Philip Barnes since 1970 and we have always found them approachable, friendly and supportive. Our diversification projects and our contracting companies have grown over the years with the professional support of Philip Barnes."
Helen Trivett — Partner, R.W. & H.E.R. Trivett & Sons
How it works
From first call to completed report
Free 30-minute consultation
Tell us about the deal — the target business, the structure you have in mind, and your timeline. We will confirm the scope of the due diligence report and what we need from you to get started.
Information gathering and review
We work through the target's financial records — statutory accounts, management accounts, tax returns, and any supporting schedules. We ask the questions the seller may not have anticipated.
Draft report and findings discussion
We present our findings clearly, without jargon. You will understand exactly what the numbers mean for the deal — and where the risks and opportunities lie.
Ongoing support through completion
Due diligence rarely ends at the report. We can support your legal team on financial warranties, assist with finance applications, and advise on post-acquisition integration and accounting.
Talk to us before you sign
If you are considering a purchase, merger or partnership, speak to Philip Barnes & Co before you commit. A free initial consultation costs you nothing — and could save you considerably more.
We act for clients across Staffordshire from our offices in Tamworth and Uttoxeter.
Tamworth: 01827 60033 | The Old Council Chambers, Halford Street, Tamworth, Staffordshire B79 7RB
Uttoxeter: 40 Carter Street, Uttoxeter, Staffordshire ST14 8EU