Financial Due Diligence

Financial Due Diligence

Financial Due Diligence is an examination that assesses the financial state of a target company for business arrangements. This examination provides a comprehensive view of the target company’s financial situation, which helps in determining the correct value for a business acquisition or investment. The audit reduces commercial and operational risks for both parties in business arrangements.

Traditionally, the buyer and investor’s Financial Due Diligence process ensures that the target company’s finances match what was agreed upon. In Aamu Partners’ process, the future earning potential is also assured by delving into the business logic and processes and examining the reliability of financial forecasts. Aamu’s team has experience in over 150 successful business arrangements.

Often, the Financial Due Diligence process starts with the buyer’s intention, but a company seeking investment or sale can also initiate the Financial Due Diligence process. The aim here is to prepare the company for sale to attract as many potential buyers as possible. Read more:

About the Financial Due Diligence process ordered by the purchasing party

About the Financial Due Diligences process for a company up for sale

Financial Due Diligence & Investment Decision Validation

In the buyer’s Financial Due Diligence, the financial health of the acquisition target (company or business) is confirmed, and risk factors that may affect the contract’s content, the arrangement’s structure, purchase price, or post-acquisition integration are identified.

A More Comprehensive Approach Compared to Market Standard

Aamu Partners’ operational model is a more comprehensive ensemble than typical and traditional Financial Due Diligence examinations. You will receive clear recommendations to support investment decision-making, including risk analysis and the assessment of restructuring impacts. With Aamu Partners, you improve your negotiation position, understand the profitability drivers and value factors of the target, gain clarity on the biggest risks, and a perspective on the accuracy of the profit and loss and cash flow forecasts.
With years of experience and industry-independent consulting, we have advised companies (industrial actors and strategic buyers) in commercial business logic modeling, profitability driver determination, and financial modeling – our approach is consultative and always based on cash flow. Aamu Partners’ business logic description and financial analysis provide a clear picture of the business structure and its generated cash flow, challenges, and value to the owner.

What Does Aamu’s Financial Due Diligence Service Include?

Aamu Partners’ FDD process provides a thorough analysis of the company’s financial condition now and in the future.

  • Comprehensive examination of the target’s finances
  • Overall analysis of the target’s business logic and future prospects
  • Clear summary report including action recommendations

Cornerstones of the Tailored Summary Report

Through Aamu Partners’ Financial Due Diligence investigation, you quickly grasp the overall financial picture of the target business, now and in the future:

  • Identify risks, minimize financial surprises in advance, and receive an external expert’s opinion on challenging factors.
  • Validate the financial status of the target, its working capital, profitability, drivers, and forecasts.
  • Receive clear expert recommendations for concrete actions that add value in preparation for a business acquisition.

With Aamu Partners, you ensure that your investment decision is based on financial data and information. You will have the arguments to justify your decision to various stakeholders such as your management team, board, or co-investors.

What the Process Entails

When you are buying a company, you are buying its future earning potential. Therefore, Aamu Partners’ Financial Due Diligence service is not limited to just going through the existing accounting, but also unravels the business logic and forecasts. This gives you a reliable picture of the earning potential of your target.

  • Overall financial picture: analysis of history and forecasts – profitability drivers, cash, cost, and balance sheet structure, and valuations
  • Business logic: construction of cash flow and the most significant factors in areas like investments, financing, operational cash flow
  • Sales forecasts: valuation of customers, order book, costs associated with customers, terms of sales invoicing
  • Detailed profitability analysis: margins and efficiency
  • Effects of restructuring: impact on costs and savings
  • Net working capital and working capital cycle: inventory, accounts receivable, accounts payable
  • General expenses and key financial processes, systems, and intellectual capital

If you would like to discuss this topic further, please contact us using the contact form at the bottom of the page.

Preparing Your Company for Sale with Financial Due Diligence

Aamu Partners can also assist sellers in preparing for a business sale. We work with the seller to go through factors affecting the sale price, and at the same time, we can identify potential challenges and aspects that decrease value, as well as rectify these to achieve the best possible price for the business.
Through the Due Diligence investigation, you quickly communicate the overall financial picture of the target business, now and in the future. You strengthen your negotiation position through data-based observations. You can influence the terms of the deal, valuation, and sale price. You will be able to argue the value and selling point of your business to the buyer, based on a reliable, professional report.

What Can Aamu Partners Do to Facilitate the Sale?

Our clients have benefited from the following services:

  • Calculating the company’s valuation and making suggestions for actions to increase the valuation
  • Forecasts based on relevant information about future earning potential and how to demonstrate this potential to the buyer
  • Data-based verification of the company’s financial situation and forecasts, and arguing the valuation based on a clear report
  • A clear summary report including action recommendations



Aamu Partners conducted a comprehensive Financial Due Diligence review on behalf of the buyer, during which the company’s financial situation and future profit potential were examined. After the business arrangements, Aamu assisted in the development of management and governance structures for the new company.

  • Buyer and Industry: Investor consortium (Heino Group, Alltech, Finnforel)
  • Buyer’s Size: n.a. M€
  • Target Company and Industry: Raisioaqua Oy (Raisio Oyj’s fish feed company).
  • Target Company’s Size: 40 M€
  • Aamu’s Role: Aamu Partners acted as a consultant for the buyer

Meluton Oy

Aamu Partners acted as a consultant for the buyer when an investor consortium acquired Meluton Oy. The decision for the business arrangement was based on profitability and net working capital analysis. As a result of the process, the buyer’s CEO was convinced of the target’s profit-making ability and financial position.

  • Buyer and Industry: Investor consortium
  • Buyer’s Size: n.a. M€
  • Target Company and Industry: Meluton, a manufacturer of industrial niche products (sound insulation)
  • Target Company’s Size: 3.4 M€
  • Aamu’s Role: Aamu Partners acted as a consultant for the buyer

Differo Oy

Aamu Partners supported the target company’s management team in strategy, financial scenario planning, and forecasting. During their long-term collaboration, Differo embarked on a journey towards a business sale.
All the work done with Aamu in leveraging management and information supported the negotiation process. Essential information was readily available and transferable as the Due Diligence phase began.

  • Buyer and Industry: Myynninmaailma, a B2B marketing agency part of the stock-listed Ilkka Group
  • Buyer’s Size: 2.3 M€
  • Target Company and Industry: Differo, a content marketing agency
  • Target Company’s Size: 1.5 M€
  • Aamu’s Role: Aamu Partners acted as a consultant for the seller

Inarin Kultahovi

Aamu Partners acted as a strategic partner to the target company’s management: Aamu Partners’ project team built a cash flow-based valuation for the company, modeled different scenarios for long-term financial development, and compiled marketing materials including a company presentation for the business sale. The business arrangement was successfully executed.

  • Buyer and Industry: Wilderness Hotels
  • Buyer’s Size: 18.6 M€
  • Target Company and Industry: Tradition Hotel Kultahovi (Vyelikuoska Oy), hotel and restaurant business
  • Target Company’s Size: 1.7 M€
  • Aamu’s Role: Aamu Partners acted as a consultant for the seller

Contact us

Want to hear more about us?
Get in touch!

Mannerheimintie 15
00260 Helsinki
Y-tunnus 2864997-9