Four things: Profitability – ensuring the target company can make money; Liquidity – Ensuring the target company has access to cash, and how fast; Fund/asset management – how the business deploys and makes money from the deployment of assets; and; Solvency – ensuring the target has adequate cash to repay debt. all of which, following FDD, will provide key negotiation points, valuations and validating business plans when combined with Commercial DD.
