Due Diligence Excel Best Practice - Balance Sheet starter pack
Originally published: 16/09/2019 08:06
Last version published: 12/04/2020 17:02
Publication number: ELQ-60733-9
View all versions & Certificate

Due Diligence Excel Best Practice - Balance Sheet starter pack

Starter Pack Best Practice for Financial Due Diligence - Balance Sheet

This tool is a template that will get you started with your Balance Sheet financial due diligence. I have built all the template analyses in the tool based on several years of experience in M&A Transaction Services at PwC focusing on what I found were recurring, essential analyses to be conducted in any good Financial DD.

I present in this model a made-up summary Balance Sheet that you can populate with your own numbers. Throughout the whole excel file, parts that expect you to manually enter your numbers are indicated in a pale yellow colors and all the other cells are automatically calculated or linked from another tab. You will find in this template :
- A reported annual and monthly Balance Sheet
- A model to build an adjusted Net Working Capital from the reported NWC with a few exemples of common adjustments
- A summary view of reported to adjusted NWC
- A graph of adjusted NWC vs reported NWC and snapshot of min max average NWC per year
- A calculation of DSO, DIO and DPO using the countback method. (please note for DSO, DIO, DPO greater than 90 days the formula needs to be updated)
- An analysis of inventory vs DIO on a monthly basis and a seasonality analysis of inventory
- A Monthly inventory breakdown
- A stock aging analysis
- A debt and debt like analysis with a few examples of common adjustments
- A maintenance Capex vs. Growth capex analysis
- An asset roll-forward analysis

This Best Practice includes
1 Excel file

Acquire business license for $40.00

Add to cart

Add to bookmarks


Further information

Give the user a strong template to start a financial due diligence of the balance sheet

Understand better the balance sheet of the target

This tool alone won't be enough to cover all due diligence points. As all businesses are specific, all serious FDD will require to hire a FDD expert.

4.8 / 5 (5 votes)

please wait...