Financial Due Diligence: Features

Every feature inside the FDD engine.

The FDD landing page tells you what you get. This page tells you exactly how it works: every data source we support, every flag the engine detects, every tab in the workbook you receive.

Summary
P&L
BS
CF
EBITDA Bridge

EBITDA Bridge ($ in 000s)

FY23 reconciliation to adjusted EBITDA

Reported EBITDA2,310From P&L
(+) Owner add-backs340GL entries flagged
(+) Non-recurring legal85Account 6420
(−) Below-market rent(120)Related-party
(+) Discontinued ops135Q2 2023 wind-down
Adjusted EBITDA2,750+19.0% vs reported

2 add-backs auto-flagged for review. Click any line for source-document trace.

Illustrative. Real deal data stays private.

Data Ingestion

Pull financials from where they live. No re-keying, no manual templating.

QuickBooks Online (API)

Connect directly via OAuth. We pull trial balance, P&L, balance sheet, and chart of accounts across all available periods. Re-pull anytime as the deal evolves.

  • Multi-entity / multi-company support
  • Auto-detection of fiscal year start
  • Class / location dimension preserved

QuickBooks Desktop

Upload IIF, QBB, or Excel exports. Our parser handles the QBD quirks (merged accounts, sub-accounts, period mismatches) and reconstructs a clean ledger.

  • Account merger reconciliation
  • Multi-year history stitching
  • Interest & tax classification cleanup

Xero

OAuth connect or upload exports. Same level of normalization and flag detection as QuickBooks.

  • Direct API sync
  • Tracking categories preserved
  • Multi-currency handling

Excel / CSV

When the seller can't (or won't) give you direct accounting access, upload what they sent. We handle trial balances, P&Ls, balance sheets, and ad-hoc formats.

  • Tolerant of inconsistent column headers
  • Period alignment across multiple files
  • Sign-convention auto-correction

Normalization & Analysis

Raw accounting data becomes diligence-ready financials.

Cash-to-Accrual Reconciliation

Sellers often present on a cash basis. We reconstruct accruals using AR/AP aging and balance-sheet movements, then surface every difference between the two views.

Multi-Entity Consolidation

Roll up multiple legal entities into a consolidated view, with eliminations and entity-level attribution surfaced on every line.

EBITDA Bridge

Auto-detected add-backs and adjustments, presented as a clean bridge from reported EBITDA to adjusted EBITDA. Every adjustment is traceable to the underlying entries.

Variance Analysis

Period-over-period and trend analysis on every line item, with automated explanations for material movements.

Classification Review

Detects misclassified expenses (e.g. contractor pay booked as COGS) and proposes corrections, preserving an audit trail you can defend.

Customer & Vendor Concentration

Identify revenue dependence on a small number of customers, and supply-chain risk from concentrated vendors, with thresholds you can tune.

Flag Detection

The engine ships with dozens of flag definitions tuned for lower-middle-market deals. A sample of what it catches:

high priority

Revenue concentration

Single-customer reliance, segment dependence, deal-driven anomalies

high priority

Expense misclassification

Operating vs COGS misallocation, capitalization errors, missing accruals

medium priority

Cash–accrual gaps

Discrepancies between cash receipts and recognized revenue

medium priority

Working capital trends

DSO/DPO drift, inventory buildup, collection issues

medium priority

Seasonal anomalies

Quarter-on-quarter breaks from established patterns

medium priority

Vendor concentration

Supply-chain risk from over-dependence on a few vendors

medium priority

Margin compression

Gross margin trends and outlier periods

low priority

Owner add-backs

Personal expenses, related-party transactions, one-time items

low priority

Account hygiene

Unusual GL accounts, missing detail, suspense balances

The Workbook You Receive

Excel-native, IB-formatted, ready to drop into your deal team's diligence binder.

Tab Structure

  • Executive Summary: findings and risk rating
  • Normalized P&L across all periods
  • Normalized Balance Sheet
  • Cash Flow reconstruction
  • EBITDA Bridge with line-item adjustments
  • Flag log with severity, category, and detail
  • Customer / Vendor concentration tables
  • Per-entity attribution (multi-entity deals)

Formatting Standards

  • Investment-banking-style number formatting
  • Consistent fonts, borders, and color coding
  • Tabular-number alignment
  • Cross-tab linked formulas. Drill down anywhere.
  • Editable inputs preserved (you can adjust assumptions)
  • Printable layout (cover sheet, page breaks, headers)

Deal Data Room

Each deal gets a workspace. Upload source documents, version reports, and keep the deal team aligned.

Source Document Repository

Store the seller's raw exports, your re-runs, supporting documents, and the final workbook in one place per deal.

Report Versioning

Re-run reports as new data lands. Every version is preserved with a timestamp, so you can show how findings evolved during diligence.

Access Controls

Deal-level permissions so analysts, partners, and external advisors see only what they need.

Have a deal in front of you? Run a report.

First report is on us. Upload financials and you'll have a workbook in roughly a minute.