Our Due Diligence Capabilities

We perform detailed historical financial audits: revenue, costs, margins, working capital and cash flows — uncovering past performance to inform future decisions.

We assess forecast robustness and assumptions: validating your projections against market data, competitor benchmarks, unit economics and scenario modelling.

We review capital structure, funding history and shareholder dilution: ensuring clarity on ownership, obligations and the implications for exit strategy.

We map risk-factors and compliance exposures: financial and operational risks, regulatory or contractual contingencies, and their impact on transaction value.

We deliver transaction-ready deliverables: clear summary reports, editable finance models, sensitivity analyses and due-diligence packs tailored for investors or acquirers.

What is Financial Due Diligence?

Financial Due Diligence is a structured, research-driven review of a company’s financial, operational and strategic position, designed to give stakeholders confidence before committing capital or forming partnerships. It goes beyond just numbers.

What’s included in our Due Diligence engagement?

Historical financial statement review (P&L, Balance Sheet, Cash Flow)
• Quality of earnings analysis and abnormal items review
• Working capital, cash conversion cycle and capital‐expenditure reviews
• Existing liabilities, commitments, off-balance sheet exposures
• Forecast validation: Revenue model, cost structure, pricing metrics
• Scenario & sensitivity modelling: upside, base, downside
• Ownership structure, capital raise history & dilution modelling
• Business model & competitive benchmarking
• Risk assessment: key assumptions, regulatory/compliance, contractual risks
• Final deliverables: Executive summary, detailed findings, updated model, dashboards & presentation-ready pack

Our Preparation Process

1. Kick-off briefing: Understand your company (or target), transaction context, and key risks.

2. Document & data collection: Historical financials, projections, cap table, contracts.

3. Analysis phase: We dig into the numbers, validate assumptions, build scenario models.

4. Review & iterate: We present findings, discuss anomalies, refine assumptions (2-3 loops).

5. Delivery: Final report and model, ready for investors/acquirers.

Frequently Asked Questions

What is due diligence, and why is it important for startups?

Due diligence is a comprehensive assessment conducted to evaluate the financial, legal, operational, and strategic aspects of a startup before entering into a transaction or partnership. It helps identify potential risks, uncover hidden issues, and validate key assumptions, ensuring informed decision-making and minimizing potential pitfalls.

What are the key areas covered during a due diligence process?

A typical due diligence process covers various areas, including financial analysis, legal compliance, market analysis, intellectual property assessment, operational evaluation, customer and supplier contracts, human resources review, and competitive landscape analysis. Each area is scrutinized to uncover potential risks and opportunities.

How long does a due diligence process usually take?

The duration of a due diligence process depends on various factors, such as the complexity of the startup, the depth of analysis required, and the availability of information. Typically, the process can range from a few weeks to a couple of months. However, scaalex strives to streamline the process without compromising the quality of the evaluation.

How can due diligence benefit my startup?

Due diligence offers several benefits to startups. It helps identify potential red flags or weaknesses, allowing you to address them proactively. It provides a clear understanding of your startup's market position, competitive advantages, and growth potential. Additionally, due diligence enhances credibility in potential partnerships, investments, or acquisitions, attracting investors and enabling informed decision-making.

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Scaalex brings fundraising insights to you, from profit & loss to cash flow planning. Build a robust financial model to make strategic fundraising decisions that impact your startup growth.

Due Diligence

Be transaction-ready. Validate with confidence.