Financial Due Diligence

Financial-due-diligence-Nigeria

Financial Due Diligence – helping investors make the right decision

In mergers and acquisitions, buyers and sellers must identify the risks and the opportunities associated with the business under consideration. Conducting effective financial due diligence can help buyers structure strategic transactions and avoid costly mistakes. It can also help sellers better understand the strengths and weaknesses of their position pursuant to a deal.

At PML Advisory, we conduct detailed due diligence for our clients in relation to merger and acquisition arrangement.

In order to help our Clients develop a complete picture of the financial realities of the target company, we carry out the following actions

Assess the quality of the targets earnings, analysing accounting policies and judgements
Review of contingent assets and liabilities
Evaluate management capabilities and forecasts
Identify key business drivers
Focus on profitability trends
Assess areas of risk concentration
Evaluateworking capital trends
Evaluate loan covenant compliance
Assess personnel trends and requirements

At PML Advisory we understand that no two companies or transactions are the same. Therefore, carrying out financial due diligence, we customize our approach to meet our clients’ specific needs. Our professionals have the requisite skill and experience to deliver your key expectation.

Financial Due Diligence

Section 1.3(1) of Guidance on Management Report on Internal Control Over Financial Reporting (ICFR) requires that every Public Company and Public Interest Entity (PIE) are required to file, on annual basis, its audited financial statements including a report on Management assessment on internal control over financial reporting, to the Commission and Council. Public companies and PIEs were mandated to report on ICFR in 2023 and 2024 respectively.

In the subsequent year of adopting ICFR, organizations transition from the initial design and implementation phase into a period of testing, and continuous improvement.

While the first year focuses heavily on establishing frameworks, policies, and control documentation, the second and subsequent year is about strengthening execution, adapting practices into daily operations, and achieving sustainable compliance.

PML Offering in subsequent reporting year

To achieve subsequent years’ objectives around report on ICFR, PML is pleased to offer the following:

Perform walkthrough and substantive testing to confirm that controls are operating as designed.
Identify gaps between documented processes and actual practices.
Provide recommendations and hands-on support to address control deficiencies noted during the first year.
Streamline redundant controls and align them with evolving business processes.
Support management in preparing reliable internal and external reports for regulators, auditors, and investors.
Conduct training and awareness programs to strengthen accountability and control ownership.

With PML Professional Services as your ICFR partner, your year 2 and subsequent year of ICFR report is about turning your compliance into competitive advantage and enhanced confidence in the numbers reported in your financial statements.

For more information on your 2025 ICFR assessment and readiness for attestation, please contact Adeola Adesanya on 08038499321 or aadesanya@pml.com.ng.