Financial Due Diligence Services UAE

An audit tests whether historical financial statements comply with IFRS for general reporting. Financial due diligence is forward-looking and deal-specific, focusing on Quality of Earnings, sustainable cash flow, working capital pegs, and hidden liabilities that directly impact the purchase price.

A QoE report analyzes the sustainability of a target’s historical EBITDA. It eliminates non-recurring revenues, unusual expenses, owner perks, and related-party subsidies to show the real ongoing operating profitability of the enterprise under new ownership.

With the roll-out of UAE Corporate Tax (9%) and strict FTA VAT enforcement, acquirers inherit the historical tax liabilities of the target entity. Tax due diligence identifies unpaid taxes, unfiled returns, and non-compliant documentation before closing.

A working capital peg is the agreed baseline level of working capital that the seller must deliver at closing. Any surplus or deficit between actual working capital and the peg results in a dollar-for-dollar adjustment to the final purchase price.

A standard transaction review typically takes 2 to 3 weeks from receipt of data room records. We also deliver an interim “Red Flag Report” within the first week to highlight potential deal-breakers early.

Key requirements include monthly general ledgers, trial balances, audited accounts, VAT201 returns, Corporate Tax filings, employee payroll and gratuity schedules, top customer/vendor contracts, and bank reconciliations.

Yes. We prepare sell-side Quality of Earnings reports and organize virtual data rooms for sellers. This speeds up closing, reduces buyer due diligence demands, and defends the valuation against aggressive price retrading.

Yes. We work alongside your legal counsel to advise on the financial definitions, working capital adjustment mechanisms, earn-out calculations, and specific accounting representations and warranties in the SPA.