Practical Guide to Financial Due Diligence

This book serves as a comprehensive practical guide to the process of financial due diligence, offering a structured approach to evaluating the financial health, risks, and compliance status of businesses. Designed to address real-world professional requirements, the publication explains the objectives, scope, and methodology of financial due diligence in transactions such as mergers, acquisitions, investments, and corporate restructuring. The 4th Edition, 2026 reflects contemporary financial reporting practices and professional expectations.

Key Features

• Step-by-step guidance on conducting financial due diligence in corporate transactions.
• Detailed coverage of analysis of financial statements, cash flows, liabilities, and contingent risks.
• Focus on identification of financial red flags and risk mitigation strategies.
• Practical insights aligned with professional standards and commercial decision-making.
• Updated edition suitable for current regulatory and financial reporting environments.

This book is primarily intended for chartered accountants, company secretaries, cost accountants, financial analysts, investment professionals, auditors, consultants, and corporate finance practitioners. It is also highly useful for business owners, senior management, private equity professionals, and students pursuing professional courses who require a practical understanding of financial due diligence in transactions and corporate evaluations.

Table of Contents

Part I: Foundations of Corporate Restructuring & Transactions

1. Corporate Restructuring – An Overview

2. Mergers & Acquisitions – An Overview

3. Legislative Provisions Related to Corporate Restructuring

Part II: Core Due Diligence Methodology

4. Due Diligence Approach

5. Seller-Side Financial Due Diligence

6. Buyer-Side Financial Due Diligence

7. Business Strategy, Processes, and Financial Due Diligence

Part III: Deep-Dive Financial Diagnostics

8. Financial Due Diligence on Financial Statements

9. Non-Current and Current Liabilities

10. Non-Current and Current Assets

11. Statement of Profit and Loss and Other Comprehensive Income

12. Contingent Liabilities, Contingent Assets, and Other Notes to Accounts

13. Financial Due Diligence and Health & Hygiene Analysis

Part IV: Risk, Valuation, and Distress

14. Enterprise Risk Management and Financial Due Diligence

15. Business Valuation and Financial Due Diligence

16. Distress Analysis and Prediction

Part V: Emerging and Sector-Specific Diligence Dimensions

17. ESG and Financial Due Diligence

18. Financial Due Diligence by Industry Sector

Part VI: Technology, Analytics, and Real-World Application

19. Artificial Intelligence and Digital Technologies in Financial Due Diligence

20. Case Studies

Annexure

• Financial Due Diligence Questionnaire and Checklist