Who This Is For: 

• Strategic buyers acquiring Nepal businesses
• Private equity and venture capital investors
• Lenders advancing significant credit against business assets
• Joint venture partners investing in existing businesses
• Sellers wanting to prepare Vendor Due Diligence

What We Deliver:

• Quality of Earnings (QoE) analysis — sustainable vs. one-time earnings 
• EBITDA normalization and bridge
• Historical financial performance (3-5 year trend)
• Working capital analysis and normalized working capital
• Net debt/cash position and debt-like items
• Key customer and supplier concentration risk 
• Revenue sustainability and pipeline quality
• Off-balance-sheet commitments and contingent liabilities 
• Management accounts vs. statutory accounts reconciliation
• Red flag summary for negotiation

Our FDD Approach:

1. Scope definition — agree key focus areas with client 
2. Management information request — financial data, contracts, ledgers 
3. Financial analysis — earnings, working capital, balance sheet
4. Management interviews — understand business model and risks 
5. Red flag identification — issues requiring price or structure adjustment
6. Draft report — for client review and comment
7. Final report — findings, normalizations, and recommendations

Typical FDD Findings: 

• Revenue not as recurring as presented (one-off contracts inflating EBITDA) 
• Working capital understated (deferred maintenance, payables stretched)
• Related-party transactions not at arm's length
• Tax exposures not disclosed in information memorandum
• Capital expenditure requirements understated
• Key customer concentration creating fragility