Unlocking the power of data in financial due diligence

In today’s deal-making environment, data is more than just a support tool; it’s a key driver of smarter, faster, and more confident decisions. Whether you’re buying, selling, or investing, understanding the numbers behind a business is essential. But it’s not just about looking at financial statements anymore. It’s about using data to uncover insights, spot risks, and identify opportunities.

At PKF Francis Clark, we believe that data-driven due diligence is not just a trend, it’s the future. Our approach to financial due diligence combines deep experience with modern tools, giving our clients a clearer understanding of the transaction.

Why data matters more than ever

Traditional financial due diligence has always relied on data, but the volume, variety, and quality of data available today has changed the game. From cloud-based accounting systems to real-time performance dashboards, businesses now generate vast amounts of information that, if properly analysed, can reveal deep insights into financial health, operational efficiency, and future potential.

However, with this abundance comes complexity. Sifting through thousands of transactions, reconciling distinct systems, and identifying anomalies or trends manually is no longer viable. That’s where data analytics tools and expertise come in, enabling us to focus on what really matters: interpreting the story behind the numbers.

From reactive to proactive due diligence

Data analytics allows us to move beyond the traditional checklist approach to due diligence. Instead of simply validating historical performance, we can now:

• Spot emerging trends in revenue, margin, and customer behaviour
• Identify operational inefficiencies or cost-saving opportunities
• Assess working capital dynamics with greater precision

This proactive approach not only enhances deal confidence but also adds strategic value, helping buyers and investors see the bigger picture and plan for post-deal integration more effectively.

Data is just as powerful when you’re selling a business. A well-prepared seller can use data to clearly show where value lies and support the story behind future growth.

By analysing and presenting data in the right way, sellers can:

• Highlight strong customer retention or recurring revenue
• Demonstrate margin improvement
• Show how operational changes have driven performance
• Support growth forecasts with evidence from past trends

How PKF Francis Clark can help you

At PKF Francis Clark, we combine deep transaction experience with cutting-edge data capabilities to deliver due diligence that’s insightful, efficient, and tailored to your needs.

Our dedicated Transaction Services team understands the nuances of business and the challenges buyers and sellers face. We work closely with clients to ensure our analysis is relevant, actionable, and aligned with their deal objectives.

Here’s what sets us apart:

• Tech-enabled analysis: We use advanced tools to interrogate large datasets quickly and accurately, uncovering insights that might otherwise be missed.
• Commercial focus: Our reports go beyond the numbers to highlight key risks, opportunities, and strategic considerations.
• Collaborative approach: We engage with management teams, advisors, and stakeholders to ensure a smooth and informed process.
• Scalable solutions: Whether you’re acquiring a £2m turnover business or a £100m group, our approach flexes to suit the size and complexity of the deal.

We’ve supported a wide range of transactions, from private equity investments to owner-managed business sales, and we’re proud of the trust our clients place in us to help them navigate these critical moments.

Looking Ahead: the future of due diligence

As technology continues to evolve, so too will the expectations around due diligence. Artificial intelligence, machine learning, and predictive analytics are already starting to reshape how we assess businesses; the firms that embrace these tools will be better positioned to deliver value.

At PKF Francis Clark, we’re investing in these capabilities to ensure our clients stay ahead of the curve. But we also know that technology is only part of the equation. It’s the combination of smart tools and smart people; experienced professionals who know how to interpret the data and ask the right questions truly makes the difference.

Let’s talk

If you’re planning a transaction, whether buying, selling, or investing, and want to understand how data can give you an edge, we’d love to talk. Our team is here to help you unlock the full potential of your deal with clarity, confidence, and commercial insight.