Due Diligence
Turn financial, tax and operational information into a clear view of the risks, adjustments and questions behind an investment or acquisition.
The objective is not to collect more documents. It is to understand what can change the price, structure or decision.
Decision Before Commitment
Historical accounts rarely tell the complete transaction story. Signum helps assess the quality of earnings, identify balance-sheet and tax exposures and translate the findings into risks, adjustments and decision points relevant to the deal.
Quality of earnings
Assessing recurring performance, non-recurring items and the sustainability of reported results.
Cash, debt and working capital
Reviewing the financial positions that can affect value and completion mechanics.
Tax exposures
Identifying historical, transaction-related and structural tax issues.
Balance-sheet and accounting review
Testing major balances, provisions, assets, liabilities and accounting treatments.
Corporate and operational dependencies
Identifying key business relationships, related-party dependencies and operating risks.
Red flags and deal adjustments
Translating findings into valuation, structure, protection and decision implications.
What We Test
Are profits recurring and supportable?
What is genuinely available or owed at closing?
What level is required to run the business normally?
Are there historical or structural exposures?
What dependencies could affect future performance?
What should change the price, structure or conditions?
A Chinese target should be reviewed not only through its historical accounts, but also through the operating, tax and ownership framework that supports those numbers.
Specialist legal or regulatory advisers should be coordinated where licensing, ownership restrictions or investment review require expertise outside the financial and tax scope.
Define the transaction, decision criteria and priority risk areas.
Review the financial, tax and operating information relevant to the transaction.
Translate findings into financial exposures and potential deal adjustments.
Present the implications for valuation, structure, protections and next steps.
Assessing a Target?
Focus the diligence on the financial, tax and operating issues most likely to affect the transaction decision.
Initial consultation · No commitment required