Unlike a statutory audit, which verifies if financial statements are "fairly stated," financial due diligence is a forensic-style analysis designed for a buyer or lender. It identifies the underlying drivers of a business and uncovers potential "deal-breakers" or valuation adjustments.
In the high-stakes world of mergers and acquisitions (M&A), a "Financial Due Diligence (FDD) Report" is the ultimate truth-seeking tool. Firms like
When you read a KPMG PDF compared to a smaller firm, the distinctions are usually: