Due Diligence Excel Best Practice - Balance Sheet starter pack
This tool is a template that will get you started with your Balance Sheet financial due diligence. I have built all the template analyses in the tool based on several years of experience in M&A Transaction Services at PwC focusing on what I found were recurring, essential analyses to be conducted in any good Financial DD.
I present in this model a made-up summary Balance Sheet that you can populate with your own numbers. Throughout the whole excel file, parts that expect you to manually enter your numbers are indicated in a pale yellow colors and all the other cells are automatically calculated or linked from another tab. You will find in this template :
- A reported annual and monthly Balance Sheet
- A model to build an adjusted Net Working Capital from the reported NWC with a few exemples of common adjustments
- A summary view of reported to adjusted NWC
- A graph of adjusted NWC vs reported NWC and snapshot of min max average NWC per year
- A calculation of DSO, DIO and DPO using the countback method. (please note for DSO, DIO, DPO greater than 90 days the formula needs to be updated)
- An analysis of inventory vs DIO on a monthly basis and a seasonality analysis of inventory
- A Monthly inventory breakdown
- A stock aging analysis
- A debt and debt like analysis with a few examples of common adjustments
- A maintenance Capex vs. Growth capex analysis
- An asset roll-forward analysis
