Financial Due Diligence Software Built Around Evidence
PFI supports financial due diligence with structured analysis of normalized earnings, revenue quality, working capital, unusual transactions, and financial risk — every finding connected to the transaction evidence that supports it.
Financial due diligence is only as reliable as the evidence behind it. PFI is built around the principle that every diligence finding should be traceable to the source transaction — not just the account balance or the management representation. That evidence-first approach makes diligence conclusions more defensible and documentation more complete.
PFI supports both buy-side and sell-side financial due diligence. Buyers use it to identify risks, normalize earnings, and assess revenue quality before committing to a transaction. Sellers use it to prepare for diligence, identify issues before they surface in the process, and present a clean, evidence-backed financial picture to prospective buyers.
Financial due diligence in PFI is part of the Transaction Intelligence module — which also covers quality of earnings analysis, M&A transaction readiness, and exit preparation.
The Due Diligence Analysis Path
From financial statements to evidence-backed diligence findings
Income statement, balance sheet, and cash flow normalization
Adjusted EBITDA with documented normalizations
Recurring vs. non-recurring, concentration, and sustainability
Normalized working capital peg and trend analysis
Anomalous transactions flagged and traced to source
Financial risks affecting deal value and structure
Transaction-level documentation for every finding
Buyer and seller diligence
Buy-side
Identify risks before closing. Normalize earnings, assess revenue quality, surface unusual transactions, and quantify working capital requirements — with transaction evidence supporting every conclusion.
Sell-side
Prepare before the process starts. Identify issues that will surface in buyer diligence, normalize your own earnings, and present a clean financial picture with supporting evidence already organized.
Core Capabilities
Financial due diligence built on transaction evidence
Normalized Earnings Analysis
Identify and adjust for non-recurring items, one-time charges, owner compensation, and other normalizations to arrive at a defensible adjusted EBITDA.
Revenue Quality Assessment
Analyze revenue by customer, product, and channel. Identify concentration risk, recurring vs. non-recurring revenue, and the sustainability of the revenue base.
Working Capital Analysis
Assess working capital trends, seasonality, and the normalized working capital peg — a critical component of purchase price adjustment negotiations.
Unusual Transaction Detection
Surface transactions that are unusual in size, timing, counterparty, or pattern — and trace them to their source for evidence-backed documentation.
Risk Identification
Identify financial risks that affect deal value — margin deterioration, customer concentration, related-party transactions, and off-balance-sheet exposures.
Supporting Evidence
Every finding is connected to the underlying transaction evidence — so diligence conclusions are defensible and documentation is built into the analysis.
See financial due diligence built around evidence
PFI connects normalized earnings, revenue quality, and working capital analysis to the transaction evidence behind every finding. Request a walkthrough to see it with your data.