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Rigorous due diligence for confident investment decisions

Financial, tax, and legal due diligence for investments and acquisitions. Identify hidden risks before you invest.

The problem

Investing in or acquiring a company without complete information is a risky gamble. Hidden liabilities, undisclosed debts, tax contingencies, pending litigation, and overvalued assets are common traps that only surface when it is too late. Without thorough due diligence, the buyer assumes risks that can turn an apparent opportunity into a multimillion-euro loss.

Our solution

We conduct multidisciplinary due diligence covering the financial, tax, legal, labor, and operational dimensions of the target company. Our team identifies risks, quantifies contingencies, verifies asset quality, and delivers an executive report with actionable findings that strengthen your negotiating position and protect your investment.

Process

How we do it

1

Scope definition

We agree with the client on objectives, timelines, and priority analysis areas based on the nature of the transaction and the target company's sector.

2

Document and financial analysis

We review financial statements, key contracts, revenue structure, debt, working capital, and projections to verify the quality of the numbers.

3

Legal and tax review

We examine regulatory compliance, tax contingencies, active litigation, intellectual property, employment contracts, and regulatory permits.

4

Executive report with findings

We deliver a clear report with a risk matrix, quantified contingencies, identified deal-breakers, and negotiation recommendations.

350+
Due diligences completed
18
Average risks detected
100%
Reports delivered on time

BM Consulting's due diligence saved us from an acquisition that looked perfect on paper. They uncovered tax contingencies worth 1.2 million euros that the seller had not disclosed.

Elena Vidal Investment Director, Iberian Capital Partners

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Types of due diligence

Not all transactions require the same level of analysis. A full acquisition of an industrial company demands reviewing environmental and intellectual property aspects that are irrelevant when purchasing a services firm. That is why we tailor the scope of each due diligence to the specific circumstances of the transaction.

The most common dimensions are financial (quality of earnings, EBITDA normalization, net debt, working capital), tax (tax compliance, open contingencies, aggressive positions), legal (litigation, critical contracts, regulatory compliance), and labor (workforce structure, collective agreements, pending contingencies).

What we analyze

Our approach goes beyond verifying accounting figures. We seek to understand the sustainability of the business: the quality of recurring revenue, dependence on key clients, the solidity of long-term contracts, the real condition of assets, and contingencies that do not appear on the balance sheet.

Each finding is classified by risk level and economically quantified whenever possible. The result is a clear map of what you are buying, what could go wrong, and how much it could cost you.

A typical case: how we saved an acquisition

In a recent transaction, our client was about to acquire a technology company for 8 million euros. The financial due diligence revealed that 40% of revenue came from a single contract about to expire with no renewal guarantee. The tax review uncovered an open contingency with the tax authority worth 600,000 euros. These findings enabled the client to renegotiate the price 25% downward and demand specific warranties in the purchase agreement.

FAQ

Frequently asked questions

What is a due diligence?
It is a comprehensive investigation and analysis process conducted before an investment, acquisition, or merger. Its purpose is to verify the information provided by the seller, identify hidden risks, and determine the true value of the business. It includes financial, tax, legal, labor, and often operational and environmental reviews.
How long does a due diligence take?
It depends on the size and complexity of the company. A due diligence for an SME can be completed in 3 to 4 weeks. For mid-size or large companies with multiple subsidiaries or jurisdictions, the process can extend to 6 to 12 weeks. We work to tight deadlines when the transaction requires it.
What types of due diligence are there?
The main types are: financial (accounting statements, debt, cash flow), tax (tax compliance, contingencies), legal (contracts, litigation, intellectual property), labor (workforce, collective agreements, contingencies), and operational (processes, technology, supply chain). Commercial, environmental, and cybersecurity due diligences also exist.
When is a due diligence necessary?
It is essential in any acquisition, merger, significant investment, or new partner entry. It is also advisable before signing joint venture agreements, granting significant financing, or assuming guarantees over third parties.
How much does a due diligence cost?
The cost depends on scope and complexity. A basic financial and tax due diligence for an SME may start from a few thousand euros. Full multidisciplinary processes for mid-size companies range between 15,000 and 50,000 euros. The cost is always a tiny fraction compared to the risk of an unverified investment.
What happens if the due diligence uncovers problems?
Findings are classified as deal-breakers (issues that advise against the transaction), price adjustments (quantifiable contingencies that should be reflected in the price), and conditions precedent (issues that must be resolved before closing). In all cases, the information strengthens your negotiating position.

Take the first step

Request a no-obligation consultation and discover what we can do for your business.

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