Financial Due Diligence (FDD): Full Scope vs. Limited Scope
Updated 2025.12.18
Financial Due Diligence (FDD): Full Scope vs. Limited Scope
Updated 2025.12.18
In M&A transactions, "One Size Does Not Fit All." While a comprehensive financial audit provides the highest level of security, we understand that deal timelines, budget constraints, and the nature of the target company often require a more flexible approach.
At Star Tax & Legal, we offer two distinct levels of Financial Due Diligence (FDD) to help you optimize your investment decision.
This is our standard, deep-dive approach recommended for Control Acquisitions (buyouts) or high-stakes investments. We meticulously analyze historical earnings, verify assets, and scrutinize liabilities.
Key Focus: Quality of Earnings (QoE), Normalized EBITDA, Working Capital analysis, and identifying unrecorded liabilities (especially Korean-specific severance pay issues).
Deliverable: A detailed report (50+ pages) suitable for investment committees and bank financing.
Designed for speed and efficiency. This approach focuses strictly on identifying "Deal Breakers" and major financial risks without getting bogged down in immaterial details.
Best For: Minority stake investments, early-stage startups, or initial screening before a full commitment.
Key Focus: Verification of cash, key debt items, and high-level revenue trends.
Deliverable: A concise summary report (Excel or Executive PPT) highlighting only critical risks.