Financial due diligence
We test the numbers before you pay for them.
Most buyers rely on the vendor's profit and loss statement and a conversation. That is not diligence. We reconcile the numbers to BAS lodgements, bank deposits and the general ledger, then tell you what the business actually earns once you are the one running it. Before you commit, not after.
Service levels
Level 1: Financial verification
3–5 business daysFor straightforward acquisitions, early-stage assessment, or where a buyer needs a fast read before committing to a full process.
- Revenue reconciled to BAS lodgements and bank deposits
- Expense trend analysis across three years
- Review of every add-back claimed by the vendor
- Owner remuneration and related-party transaction identification
- Red flag memorandum with the questions to put to the vendor
Level 2: Scoped due diligence
2–3 weeksThe standard engagement for an owner-managed business acquisition. Everything in Level 1, plus:
- Adjusted EBITDA normalisation bridge, with every adjustment evidenced
- Working capital analysis and completion adjustment recommendation
- Balance sheet review, asset verification and PPSR searches
- Liabilities, commitments and contingencies
- Employee entitlements and superannuation compliance exposure
- Customer concentration and revenue sustainability
- Sector-specific operating metrics
- Written findings report with recommendations on price, structure and contract protections
Level 3: Full earnings analysis
3–5 weeksWhere the transaction is material, a lender requires it, or a vendor wants sell-side preparation. Everything in Level 2, plus:
- Source-document sampling and proof-of-cash testing
- Monthly analysis across 24–36 months, including seasonality
- Detailed maintenance capital expenditure assessment
- Sensitivity and downside scenario modelling
- Formal report prepared for reliance by the buyer and a nominated lender
Which level do I need?
Level 1
You want a fast read on the numbers before committing to a full process.
Level 2
You are buying an owner-managed business. This is the standard engagement, and most buyers land here.
Level 3
The deal is material, a lender needs a report it can rely on, or a vendor is preparing for sale.
Fees
Fixed fees by combined transaction value
| Combined transaction value | Level 1 · Verification | Level 2 · Scoped DD | Level 3 · Full analysis |
|---|---|---|---|
| Under $1,000,000 | $2,500 | $4,500 | Not offered |
| $1,000,000 – $3,000,000 | $3,500 | $7,000 | $11,000 |
| $3,000,000 – $6,000,000 | $4,500 | $9,500 | $15,000 |
| $6,000,000 – $10,000,000 | $6,000 | $14,000 | $22,000 |
| Above $10,000,000 | Quoted | Quoted | Quoted |
Under $1,000,000
- Level 1 · Verification
- $2,500
- Level 2 · Scoped DD
- $4,500
- Level 3 · Full analysis
- Not offered
$1,000,000 – $3,000,000
- Level 1 · Verification
- $3,500
- Level 2 · Scoped DD
- $7,000
- Level 3 · Full analysis
- $11,000
$3,000,000 – $6,000,000
- Level 1 · Verification
- $4,500
- Level 2 · Scoped DD
- $9,500
- Level 3 · Full analysis
- $15,000
$6,000,000 – $10,000,000
- Level 1 · Verification
- $6,000
- Level 2 · Scoped DD
- $14,000
- Level 3 · Full analysis
- $22,000
Above $10,000,000
- Level 1 · Verification
- Quoted
- Level 2 · Scoped DD
- Quoted
- Level 3 · Full analysis
- Quoted
All fees exclude GST.
Modifiers
- Additional and out-of-scope work: $295 per hour.
- Multi-entity groups: add $1,500 per additional trading entity beyond the first two.
- Expedited delivery (under 10 business days for Level 2, under 15 for Level 3): add 30%.
- Second target: where a buyer engages us on an alternative target within 90 days of a first engagement, the second is charged at 75% of schedule.
Terms of engagement
- 50% on engagement, 50% on delivery of the report.
- Fees are not contingent on settlement, finance approval, or the conclusion reached.
- If the analysis recommends against the transaction, the fee is unchanged.
- Fixed fees assume the standard information request is met; material gaps are notified before extra time is incurred.
- Either party may terminate; completed work is charged pro rata.
What is included
- All analysis, document review and reconciliation work
- Direct liaison with the vendor's accountant and your solicitor
- Written report and supporting workbook
- One debrief call, and a second on request
- Follow-up questions for 30 days after delivery
What is not included
- Independent property valuation, building, pest or environmental reports
- Legal due diligence, contract review or drafting
- Formal business valuation
- Taxation advice
- Audit or any assurance opinion
- Post-settlement integration or bookkeeping
If you need any of these, we will say so and point you to a qualified specialist. Several of them are things we will actively recommend you obtain.
Want a straight read on your deal?
Book a free call with Nicholas. Bring the numbers you have, and we will tell you the right service level and the fixed fee. No obligation.
Common questions
No. Due diligence is a commercial review, not an audit, and it does not provide assurance over financial statements. What we do is rebuild the earnings picture from source documents like bank statements, BAS lodgements and the general ledger, then tell you what the business actually earns once an arm's-length owner is running it. We do not provide audit or assurance services.
Level 1 gives you a fast read before you commit to a full process. Level 2 is the standard engagement for buying an owner-managed business. Level 3 is for bigger transactions, deals where a lender needs a report they can rely on, or vendors preparing for sale. Not sure? Send the financials through and we will confirm the right level and a fixed fee within two business days. That assessment is free.
For scoping, just the target's last three years of financial statements and the contract of sale. Once you engage us, we send a standard information request covering BAS lodgements, bank statements, the general ledger, payroll records and the lease. Fixed fees assume that request is met. If the records are patchy, we tell you before any extra time is spent.
You get the finding, the evidence behind it, and a clear recommendation. That might be a price adjustment, a change to the deal structure, a contract protection to demand, or advice not to proceed at all. The fee stays the same either way. You are paying for the answer, not for a particular answer.
No. We provide the analysis and the documents, and we do not arrange finance. If you want the finance application handled as well, we refer you to The Lending Lab Pty Ltd, a separate broking business, and we disclose that relationship in writing. Fee discounts may apply when The Lending Lab is engaged on the finance for the same matter. And if you would rather have the analysis done by a firm with no referral relationship to any broker, we will say so and refer you.
Some can. But most accountants spend their time preparing accounts, and pulling apart another business's accounts under deal pressure is a different job. We work alongside your accountant and your solicitor, and our report flags exactly which tax and legal questions need their input.