Due diligence

Due diligence

Whether you’re a corporate entity, private equity firm or high-net-worth individual, it’s important to ensure your acquisition delivers strategic and/or enhanced profitability while minimising financial and tax risks.

Our due diligence process is designed to help you interrogate financial, commercial and operational assumptions, rate the level of risk involved in the transaction, explore strategies to address risks or make adjustments, as well as suggesting when to walk away from an unsuitable deal.

Due diligence clarifies the strengths and weaknesses of the company you’re thinking of buying, or your own company for that matter. This could affect the purchase price, or negotiations concerning guarantees or indemnities. At Baker Tilly Staples Rodway, we offer you due diligence support in the following areas:

  • Financial due diligence
  • Tax due diligence
  • HR due diligence

We have the flexibility to respond to tight deadlines and can draw on the expertise of auditors, dedicated tax consultants, HR specialists and other experts as required.

If you are looking at buying the assets of a business, we can help you assess the quality of working capital, fixed assets and unreported capital expenditure requirements.

The ultimate outcome of a due diligence engagement is an insightful report detailing the quality of earnings and assets as part of our findings, providing recommendations for post-acquisition improvements, suggesting potential purchase price adjustments, identifying key risk areas that should be ring-fenced, and highlighting issues that could be deal breakers.

The value of due diligence

For buyers:

  • Understand revenue and earnings drivers, as well as potential upsides
  • Identify cost structures and cash flow risks
  • Assess the quality of assets such as working capital
  • Highlight reported and unreported liabilities and obligations
  • Uncover issues early with the opportunity to reassess, modify and proceed, or exit
  • Opportunities to de-risk a deal and/or renegotiate to better reflect the risk profile of the business
  • Reveal potential deal breakers

For vendors:

  • Identify issues that could negatively affect price and fix them early
  • Normalise earnings so the business is presented in the best light
  • Prepare you for difficult questions from potential buyers
  • Enhance business continuity so you are better positioned for price negotiations
  • Suggest the timing, pace and process of the sale
  • Ultimately lead to a higher sale price

Deal assistance

We can assist and shepherd you through the full deal process, including reviewing sale and purchase agreements, and structuring the purchase entity (including the debt and equity mix) ensuring tax efficiency and compliance with thin capitalisation requirements.

Services

Choose your location for better results

Make an Enquiry

Find a due diligence specialist

News

Charity audits 500x500
28 May 2025

To audit or not to audit: That is the question for registered charities

Every registered charity in New Zealand faces the question of whether they ought to be audited. Let’s look at the determining factors…

Wage theft 500x500
23 May 2025

News for employers: Wage theft is now a crime in New Zealand

New Zealand employers who intentionally withhold pay from employees could now face hefty penalties: Imprisonment for up to a year and a fine of up to $30,000.

Budget 2025 500x500
22 May 2025

Budget 2025: Investment Boost is welcome news for Kiwi businesses

Minister of Finance, Nicola Willis, presented her second budget this afternoon.

David Searle, Audit, Mergers and Acquisitions, Managing Director at Baker Tilly Staples Rodway
20 May 2025

Hungry businesses will be looking for more than belt-tightening in Budget

Businesses like right-leaning governments. It’s no surprise that approval for the Government’s economic management has shot up since before the last election, when leaders’ approval ratings had plummeted almost to single figures in our Baker Tilly Staples Rodway polling.

Tax Freedom Day 500x500
16 May 2025

Tax Freedom Day 2025: Burden higher despite tax and spending cuts

A limp economy has brought little relief to New Zealanders despite a shift in tax brackets, according to this year’s Tax Freedom Day calculations.  Kiwis are set to spend 135 days paying tax this year, a day more than in 2024.

2025 Pre budget survey 500x500
15 May 2025

Pre-budget survey 2025: Businesses want action on tax, and more innovation

Our 2025 pre-budget survey has revealed a mixed business scorecard on the Government’s performance.  Business optimism ahead of this year’s Budget is markedly better than it was pre-election, but the overall report is "could do better".  

Tax talk not for profit 500x500
09 May 2025

Tax Talk: Proposal could lead to breaking point for small clubs and societies

Inland Revenue has released an exposure draft on not-for-profit (NFP) transactions – including a proposal that threatens the existence of some small clubs and societies across New Zealand…

Presenteeism 500x500
24 Apr 2025

Presenteeism: When workers are present but not wholly functioning

What happens when you have an employee who is physically “on the job”, but is unwell or emotionally or mentally preoccupied?

Trust beneficiaries 500x500
15 Apr 2025

Potential tax pitfalls for NZ trust beneficiaries living in Australia

Kiwi trusts increasingly include beneficiaries who have crossed the ditch and become Australian tax residents.  So, before providing any payments, distributions or benefits to them, the trustees need to be cautious about the potential Australian tax costs for those beneficiaries.

Farm advisory 1200x628
09 Apr 2025

How your farm could benefit from creation of an advisory board

In New Zealand’s dynamic agricultural sector, advisory boards are increasingly vital for farming businesses seeking to thrive amidst evolving challenges and opportunities.

Tax Talk 500x500 2
04 Apr 2025

Tax Talk: Inland Revenue proposals may not fix FBT’s mid-life crisis

After 18 months of waiting, Inland Revenue has released its "Fringe benefit tax – options for change" officials’ issues paper for public comment.

Working on your business 500x500
02 Apr 2025

Working on your business: Achieve goals by rising above the grind

Many will have heard the old saying, "are you working in your business or working on your business?”.

Our website uses cookies to help understand and improve your experience. Please let us know if that’s okay by you.

Cookies help us understand how you use our website, so we can serve up the right information here and in our other marketing.