Financial Due Diligence
Expert financial due diligence designed to reveal opportunities, reduce uncertainty, and support smarter transactions.
Trusted Financial Due Diligence Solutions for Businesses in UAE
Financial Due Diligence (FDD) plays a vital role in understanding the true financial position of a business, particularly during mergers, acquisitions, investments, or strategic partnerships. At Crowe, we provide comprehensive financial due diligence services in Dubai and across the UAE, helping clients make confident and informed decisions
As a trusted financial due diligence firm in Dubai our approach goes beyond reviewing numbers. We focus on understanding how a business performs, where risks may exist, and how future outcomes could be impacted. Our experienced professionals deliver clear and practical insights that support sound commercial judgment and strategic planning.
By engaging Crowe as your financial due diligence consultant, you gain clarity, reduce uncertainty, and protect your investment at every stage of the transaction.
What is Financial Due Diligence?
Financial Due Diligence is a detailed review of a company’s financial records, performance trends, and overall financial stability. It is essential for buyers, investors, lenders, and stakeholders who need a reliable understanding of a target company before making major financial commitments.
The process involves examining historical financial statements, tax compliance, working capital, debt arrangements, and cash flows. The purpose is to identify potential risks, financial inconsistencies, and areas that may affect valuation or deal structure.
A well-executed financial due diligence service provides transparency and helps ensure that decisions are based on facts rather than assumptions.
Our Financial Due Diligence Approach
As an established financial due diligence firm in UAE, Crowe conducts a structured and in-depth analysis tailored to each transaction.
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Historical Financial Analysis
We review past financial statements to understand performance trends, cost structures, and revenue patterns to assess the reliability of reported results.
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Quality of Earnings Analysis
Our team evaluates whether earnings are sustainable and accurately reported by reviewing revenue recognition, one-off items, and overall profitability.
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Working Capital Analysis
We assess current assets and liabilities to determine liquidity and identify adjustments needed to reflect normal operating levels.
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Debt and Cash Flow Analysis
We review loan agreements, repayment obligations, interest exposure, and cash flow generation to evaluate the company’s ability to meet financial commitments.
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Tax Compliance Review
We examine tax filings, outstanding liabilities, and compliance with applicable tax regulations to identify potential exposures or risks.
Uses of Financial Due Diligence
| Key Areas of FDD | Analysis performed | Outcome |
|---|---|---|
| Historical Financial Analysis | Trend Analysis, reliability assessment | Reveals financial stability and growth patterns |
| Quality of Earnings Analysis | Earnings sustainability, profit analysis | Identifies true profitability & non-recurring items |
| Working Capital Analysis | Liquidity assessment, operational efficiency | Ensures short term financial health |
| Debt & Cash Flow Analysis | Leverage assessment, financial flexibility | Assesses debt servicing ability and cash generation |
| Tax Compliance Review | Tax risk identification, compliance check | Ensures accurate tax reporting and identifies tax liabilities |
Facts About Financial Due Diligence
At CROWE, our Financial Due Diligence services provide you with the insights needed to make confident and strategic financial decisions.
Contact us today to learn how our expertise can help you navigate your next big investment with assurance and precision.
| Fact | Implication |
|---|---|
| Companies that perform thorough Financial Due Diligence are more likely to secure favorable investment terms. | Investors might have greater confidence in the financial integrity of well-scrutinized business. |
| Effective Financial Due Diligence might uncover potential financial pitfalls before they become problematic | Early identification of financial risks allows for proactive mitigation strategies |
| Comprehensive Financial Due Diligence enhances the accuracy of business valuations. | More precise valuations lead to better-informed decision-making and negotiation leverage |
| Financial Due Diligence is essential for compliance with regulatory standards during M&A transactions | Ensures that all financial aspects meet legal and regulatory requirements. |
Frequently Asked Questions
Financial Due Diligence is commonly required for companies involved in mergers and acquisitions, raising capital, restructuring, or preparing for an IPO. It applies across industries such as technology, healthcare, manufacturing, retail, and professional services.
The timeline depends on the size and complexity of the business and the scope of the review. Most engagements take between a few weeks and several months, depending on data availability and transaction requirements.
Typical documents include:
- Financial statements (income statement, balance sheet, cash flow)
- Tax returns and tax compliance records
- Debt agreements and repayment schedules
- Accounts receivable and payable aging reports
- Inventory records
- Key contracts and legal agreements
- Budgets and financial forecasts
Without proper Financial Due Diligence, buyers and investors may face undisclosed liabilities, inaccurate valuations, cash flow issues, or regulatory and tax risks. This can lead to financial losses and unfavorable deal outcomes.
Financial Due Diligence helps identify adjustments to earnings, working capital, and debt levels. These findings directly impact valuation and help ensure the purchase price reflects the company’s true financial position.
Yes. A detailed review of financial records and accounting practices can highlight unusual transactions, inconsistencies, or areas that require further investigation.
A financial advisor leads the analysis, interprets financial data, identifies risks, and provides practical recommendations. Their role is to ensure the due diligence process is thorough, objective, and aligned with the client’s goals.
Get in touch
Umesh Narayanappa
Partner – Abu Dhabi
Shailendra Ranjan
Partner - Advisory
Prince Sangtani
Senior Manager – Corporate Finance