Note: KPMG does not provide blank, fillable PDFs publicly. To get an actual KPMG PDF report, you would need to engage KPMG for a live transaction. This draft mimics the language, sections, and key focus areas of a genuine report.
DRAFT: Financial Due Diligence Report (KPMG Style) Confidential Prepared for: [Acquirer Name / Private Equity Sponsor] Target: [Target Company Name] Date: [Current Date] Project Code: [e.g., KPMG-2026-XXX] 1. Executive Summary KPMG has performed financial due diligence on [Target Name] for the 12 months ended [Date] and the interim period to [Date].
Key Findings: Normalized EBITDA of $XXm; net debt of $XXm; total adjusted working capital of $XXm. Quality of Earnings: Recurring revenues represent [X%]; one-off items identified totalling $Xm. Key Risks: Customer concentration (Top 3 customers = 45% of revenue); pending tax litigation ($Xm). Net Debt & Debt-like Items: Includes deferred consideration ($Xm) and shareholder loans ($Xm). Trading Outlook: Post-period revenue growth of [X%] but margin compression due to [input].
2. Scope of Work & Limitations This report is prepared solely for the use of [Client Name] in connection with the proposed acquisition of [Target]. It does not constitute an audit or review under ISAs. Reliance on this report by any third party is prohibited. 3. Quality of Earnings (P&L) 3.1 Reported vs. Adjusted EBITDA | | FY 2024 | FY 2025 | LTM [Date] | |---|---|---|---| | Reported Net Profit | X | X | X | | Adjustments (see below) | X | X | X | | Adjusted EBITDA | X | X | X | 3.2 Key Adjustments financial due diligence report kpmg pdf
Non-recurring legal & professional fees ($Xm) Owner’s discretionary expenses ($Xm) Inventory write-offs ($Xm) Gain on asset disposal (excluded, $Xm)
3.3 Revenue Analysis
Recurring vs. one-off revenue: [chart] Gross margin trend by product line Customer churn rate: X% Note: KPMG does not provide blank, fillable PDFs publicly
3.4 Operating Expense Analysis
Headcount & payroll normalization Rent vs. market comparison Marketing spend as % of revenue
4. Net Debt & Debt-like Items | Component | Amount ($m) | |---|---| | Bank borrowings | (X) | | Cash & cash equivalents | X | | Finance lease liabilities | (X) | | Unpaid deferred consideration | (X) | | Accrued interest | (X) | | Total Net Debt | X | Debt-like items identified: Customer prepayments, warranty provisions, restructuring accruals. 5. Working Capital Analysis restructuring accruals. 5.
Normalized working capital: $Xm Cash conversion cycle: [Days] Seasonality: Peak working capital requirement in [Month] ($Xm) Target Net Working Capital (NWC) peg: $Xm (based on 3-month average)
6. Cash Flow & Capital Expenditure
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