Due Diligence Reports

Data due diligence investigation, with regard to adviser practices, refers not only to an in-depth review of the data held (normally just electronic from the Back-Office/CRM/Excel) of an adviser’s client activity, but also profiling the products and services conducted in order to help provide the acquirer with information primarily on both the quality and quantity of the data. This will ensure that the company is in compliance with its sales prospectus and will highlight certain risk areas and opportunities for the business valuation by the acquirer. It is a roadmap for existing and potential investors in understanding better whether the company or incomes of the seller match their statements.

In a non-exhaustive list, due diligence would consist of an examination of:

  • The data base(s) snapshot
  • Quality of data held and any issues that an acquirer should consider
  • Profile and volumes of clients, introducers, products, services
  • Assets under management/influence
  • Risk factors
  • Estimated Fund Valuation where possible

Every investor is going to have different investment criteria and risk tolerance, as well as a strategy preference. It thus follows that there is no "best" adviser practice that most closely matches the investors' preferences.

An investor should almost always:

  • Request consultation from a professional data analyst
  • Analyse the data as well as the other normal due diligence activities
  • Understand how the client base is made up
  • Understand how the policies and services are segmented
  • Get a handle on the volumes and opportunities and risk
  • Get a view on the shelf-life of recurring income and consistency with accounts

To find out more about our Due Diligence Reports please contact us.