Last version published: 03/10/2022 09:16
Publication number: ELQ-12143-3
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Due Diligence P&L - Exhaustive Revenue and Costs analysis template
Financial Due Diligence exhaustive P&L model for Revenue & Costs Analysis. Big-4 like checklist of financial due diligence analyses.
* *** Model is fully unlocked! *****
*** This template includes all the analyses from my "P&L Due Diligence - Exhaustive Revenue Analysis model" and add extensive Cost analyses ****
This excel file is also the support of my Financial Due Diligence P&L online course.
Already used by dozens of corporate finance profesionnals, this P&L financial due diligence model is focused on full exhaustive P&L analysis both on the Revenue and the Cost side. It represents several days of work and is based on 5 intensive years of experience as part of the PwC transaction services Financial Due Diligence team, over 2 years of work in highly demanding Private Equity Investment jobs and 3 additional years of SaaS financial due diligence and M&A due diligence.
This financial due diligence model can be used as a Financial Due Diligence checklist of main financial analyses to perform in a M&A process and is perfectly suitable for a M&A (merger & acquisition) process, Transaction Service consultant but can also greatly help any financial analyst or CFO to better understand the overall P&L, revenue and cost trends of a company.
All the analyses included in this financial due diligence template are as follows :
- Overview of P&L, variations and KPIs (Key Performance Indicators)
- Revenue bridge (by product, or channel, or geography etc.)
- EBITDA bridge (by type of cost)
- Current Year Trading (ie. analysis of the current fiscal year vs. same period in previous years)
- Current Year Outturn (ie. Year to Date, Year to go vs. budget compared to previous years)
- Budget Accuracy (ie. how accurate was management at budgeting in previous years)
- Constant Currency Analysis
- Analysis of Transaction effect vs. Translation effect
- Impact of Hedging on revenue
- Revenue Seasonality
- Revenue Concentration
- Revenue Mix
- Revenue growth (Month over month, Quarter over Quarter, Rolling LTM, L6M, L3M, and comparison of month vs. same month last year)
- Impact of accrual revenue vs. cash accounting (ie. impact of deferred revenue)
- Refunds review (ie. how refunds have moved over the years)
- Discount and Rebates (ie. how discounts and rebates have changed over the years + discount and rebated per main customers)
- Dashboard of Variation of Revenue, price and volume per product for each year
- Full Price Volume Mix analysis including impact on Gross Profit Margin of new products (if you are interested only in this part, I also sell the PVM model on a standalone)
- Customer count Churn bridge and average monthly churn rate
- Monthly Recurring Revenue (MRR) bridge (ie, impact of upgrade, downgrade, new and churn customers)
- Cohort analysis and Revenue retention % profile by year of onboarding
- Advanced revenue analysis by vintage (ie. analysis of revenue generated by customers based on their year of onboarding and based on the year they churned.
- Revenue ramp-up by new customers
- Revenue ramp-up by new product
- Like for Like analysis (ie. analysis of the trend of a "core" category of product or of revenue generating assets, like a portfolio of boutiques for instance)
- Recurring revenue vs. One-off
- Monthly plans vs. Annual plans
- Pipeline and Backlog analysis
- Contract Renewal Dates
- Average revenue per client
- Evolution of Mix of customers by price plan by year
- Lifetime Value per client per date of onboarding (ie. how much revenue each client generated from his date of onboarding)
- Price elasticity
- COGS breakdown
- Raw Material price analysis
- Suppliers concentration
- GP by product
- Bubble Chart to analyse Rev and GP by product / department etc.
- Opex overview
- Fixed vs. Variable costs analysis
- Team Organigramme
- Employee costs breakdown
- Employee costs per department
- Staff Turnover and ageing
- Revenue per relevant FTE per department
- Lease analysis
- Marketing costs breakdown
- Marketing & lead conversion
- Other Opex breakdown
Overall, this FDD model should be seen as an exhaustive M&A due diligence playbook that you can use and apply to your own specific situation, twisting the analyses to fit your particular needs and deep diving in the most relevant ones. In any case, it will provide any financial analyst doing M&A due diligence with a clear step by step approach of all the usual revenue & cost analyses that can be performed on a company.
This model also is the support to a full financial due diligence online course that I have created on how to perform Financial Due Diligence. If you are interested in learning more, please feel free to reach out by DM or by email.
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Give an objective playbook for anyone looking to perform due diligence on the Revenue and Costs of a target business.
Investor looking to analyse a target. Transaction Services professional performing Financial Due Diligence. Buyer looking at acquiring a company. CFO looking to better understand costs and revenue.