DUE DILIGENCE

Our services

KAALAFINO’s CA & CMA-led team delivers comprehensive Due Diligence in line with Big-4 standards, offering deep insights, red flag identification, and decision-ready reports that support high-value business transactions.

1.Financial Due Diligence (FDD)

We evaluate the financial strength, stability, and reliability of the target entity.

Our review includes:

• Historical financial statements

• Quality of earnings

• Revenue verification

• EBIT/EBITDA normalization

• Working capital analysis

• Cash flow examination

• Debt & borrowing review

• Related party transactions

• Contingent liabilities

• Extraordinary items

• Capital structure

We ensure financial statements reflect true business performance.

2.Operational Due Diligence

We evaluate business processes, controls, and operational feasibility.

Covers:

• Procurement & supply chain

• Production efficiency

• Inventory controls

• Order-to-cash cycle

• Customer concentration analysis

• Vendor dependency

• Pricing policies

• HR & payroll controls

• SOP & internal control environment

This helps assess the sustainability and scalability of operations.

We analyze whether the business model is commercially viable.

Includes:

• Market position analysis

• Customer data review

• Competitor benchmarking

• Pricing model assessment

• Industry growth analysis

• Margin performance

• Unit economics

• Distribution & sales model

This indicates whether future growth projections are realistic.

3.Commercial Due Diligence

4.Vendor / Distributor Due Diligence

5.Startup Due Diligence (Funding / Investor-Ready Review)

Before onboarding a vendor/distributor, we assess:

• Financial stability

• Compliance reliability

• Operational capability

• Past litigations

• GST & tax compliance

• Creditworthiness

• Reputation risks

This protects your business from unreliable partners.

Perfect for seed-stage to late-stage startups.

We review:

• Cap table

• Founders’ legal documentation

• ESOP plans

• Revenue recognition

• Burn rate & runway

• Compliance filings

• Data rooms

• Investor reporting

• Financial forecasts

This helps startups raise funds faster and strengthens investor confidence.

You receive a detailed Due Diligence Report covering:

• Executive summary

• Red flags & critical risks

• Financial analysis

• Tax & GST exposure

• Legal & compliance gaps

• Operational weaknesses

• Commercial insights

• Normalized EBITDA & valuation adjustments

• Quantitative and qualitative findings

• Integration recommendations

The report is structured for:
✔ Investors
✔ Acquirers
✔ Lenders
✔ Boards & CXOs

• Investors (Angel, VC, PE)

• Companies acquiring or merging

• Businesses onboarding vendors/distributors

• Banks and lenders

• Startups raising funding

• Foreign companies entering India

• Partnerships & joint ventures

• Companies restructuring operations

Due Diligence protects you from financial and legal surprises.

DELIVERABLES OF DUE DILIGENCE

OUR DUE DILIGENCE METHODOLOGY

1. Understanding Transaction Objective

Investment, acquisition, merger, vendor onboarding, or strategic partnership.

2. Data Room Review

We evaluate all documents, MIS reports, ledgers, contracts, and compliance files.

3. Analytical Review

Deep dive into financials, processes, legal compliance, and risk areas.

4. Red Flag Identification

Highlighting potential deal-breakers and hidden liabilities.

5. Discussions with Management

Clarifying inconsistencies and understanding business assumptions.

6. Reporting & Presentation

Clear, data-backed report with actionable insights.

WHO NEEDS DUE DILIGENCE?