When companies grow, they often face important decisions: acquiring another business, entering a new market, taking on investors or lending significant funds. In all these cases, due diligence is one of the most important tools for managing risk.
At GSI Associates, due diligence and forensic accounting are part of our core financial services, supporting corporate advisory, M&A, group structuring and cross-border transactions.
What due diligence actually does
Due diligence is much more than a checklist. The goal is to build a clear picture of the business you are buying, partnering with or financing, so you can answer questions such as:
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Are the reported profits and cash flows reliable?
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Are there hidden liabilities, claims or disputes?
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Are key contracts, licences and regulatory approvals in place?
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Is the business model sustainable and scalable?
Good due diligence does not eliminate risk, but it helps you understand it and price it properly.
Types of due diligence to consider
Different transactions require different types of review. Common areas include:
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Financial due diligence
Analysing historic results, working capital, cash flow, debt, forecasts and the quality of earnings. -
Tax and legal due diligence
Reviewing tax compliance, legal structure, contracts, licences, disputes and contingent liabilities. -
Operational due diligence
Looking at systems, processes, controls, key staff, suppliers and customers. -
Compliance and reputational checks
Considering regulatory exposure, sanctions, fraud risk and adverse media.
Because GSI Associates combines international corporate advisory, accounting systems advisory, forensic accounting and investigations, we can link financial findings to controls, processes and governance, not just numbers on a page.
Why due diligence matters for different stakeholders
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Buyers and investors
Understand what you are buying, avoid overpaying and negotiate protections (warranties, price adjustments, earn-outs) based on identified risks. -
Lenders
Assess borrowers’ capacity to service debt and identify issues that may affect security, cash generation or covenant compliance. -
Existing owners
Prepare for sale by identifying weaknesses early, fixing problems in advance and presenting cleaner information to potential buyers.
Cross-border and group transactions
For international deals, due diligence becomes more complex:
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Multiple jurisdictions, accounting standards and tax rules
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Language barriers across documents and counterparties
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Different expectations around governance and reporting
GSI Associates supports clients in the UK and internationally, including China, Mauritius, Malta, Gibraltar, the Balkans, UAE and Africa, combining local insight with group-wide consolidation and reporting expertise.
When supported by experienced advisors, due diligence becomes a practical decision tool: it helps you see the full picture, avoid surprises and structure transactions that work in the real world, not just on paper.