Do increases in federal funds rates affect the sale of my business?

In basic terms, the federal funds rate refers to the target rate that commercial banks borrow and lend their cash reserves overnight. The federal funds rate influences short-term treasury interest rates and indirectly affects everything from home and automobile loans to credit card rates. Don’t miss: Why perform financial due diligence? This month the Federal …

Keep Reading

Why perform financial due diligence?

In basic terms, a financial due diligence (FDD) is a process of gathering information concerning the target company, its source of revenue, the environment in which it operates, its sustainable cash flows, and risk profile. FDD is done to ensure that the prospective buyers and interested stakeholders are able to make an informed investment decision. …

Keep Reading

Quality of earnings report vs. an audit report

What is the difference between a financial statement audit and a financial due diligence (aka quality of earnings report)?  In general terms, an audit report provides assurance to the public that a company’s financial statements are not materially misstated while a financial due diligence performs analytical procedures to gain a deeper understanding of the economic …

Keep Reading