Sterling Risk Advisory provides independent due diligence services for investors, acquirers, and lenders assessing potential transactions or investment opportunities. We conduct commercial, operational, and regulatory assessment to identify risks, validate assumptions, and inform investment decision-making.

Our due diligence practice operates independently from transaction advisory, providing objective assessment for clients requiring third-party verification of business quality, market positioning, and operational capability.

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Due Diligence Services

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Commercial Due Diligence

Assessment of market positioning, competitive dynamics, and growth assumptions:

• Market size validation and growth trajectory assessment
• Competitive positioning analysis
• Customer concentration and relationship quality
• Revenue model sustainability and pricing power
• Growth assumption testing and validation
• Key customer interviews and reference calls

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Operational Due Diligence

Evaluation of business model execution and operational capability:

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• Operating model assessment and scalability
• Management capability and organisational depth
• Key person dependencies and succession planning
• Technology and systems infrastructure
• Supply chain reliability and supplier relationships
• Operational risk identification

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Regulatory Due Diligence

Assessment of regulatory compliance and licensing requirements:

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• Regulatory framework mapping
• Compliance status verification
• License and permit validation
• Outstanding regulatory matters identification
• Future regulatory requirement assessment
• Regulatory risk quantification

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Financial Due Diligence Support

While not providing accounting due diligence, we support financial assessment through:

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• Revenue quality and sustainability analysis
• Cost structure evaluation
• Working capital requirement assessment
• Cash flow generation validation
• EBITDA normalisation support

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Who We Work With

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Private Equity FirmsIndependent assessment for potential platform acquisitions or add-on opportunities requiring commercial and operational validation beyond financial due diligence.

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Corporate AcquirersThird-party commercial and operational assessment for acquisition targets, particularly where internal resources lack sector expertise or independent perspective is valued.

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Lenders and Credit CommitteesCommercial assessment supporting lending decisions, refinancing, or covenant waiver considerations requiring independent business quality evaluation.

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Family Offices and HNW InvestorsIndependent assessment for direct investment opportunities where sophisticated due diligence capability isn't available internally.

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Typical Situations

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We provide due diligence for:

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• Acquisitions requiring independent commercial validation
• Platform investments requiring comprehensive operational assessment
• Management buyouts where lenders require independent business review
• Refinancing situations requiring updated business assessment
• Investment committee decisions requiring third-party validation
• Distressed situations requiring independent operational review

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Due Diligence Approach

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Independent Perspective

Due diligence benefits from objective assessment unconstrained by deal advocacy. We identify risks and validate assumptions without pressure to support transaction completion. Our reports reflect business reality rather than supporting predetermined investment views.

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Red Flag Identification

Effective due diligence identifies material risks before completion. We focus on identifying issues that impact valuation, deal structure, or investment decision - customer concentration, regulatory non-compliance, operational dependencies, management capability gaps, market positioning weaknesses.

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Practical Recommendations

Due diligence should inform decision-making and deal structuring. Our reports include clear risk assessment, valuation implications, and practical recommendations around deal structure, price adjustment, management changes, or post-completion priorities.

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Sector Understanding

Generic due diligence frameworks miss sector-specific risks and dynamics. Our approach emphasises understanding sector economics, regulatory environments, and operational requirements specific to the target business.

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‍Deliverables

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Due diligence engagements typically produce:

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• Comprehensive due diligence report covering commercial, operational, and regulatory findings
• Executive summary highlighting key risks and recommendations
• Risk matrix quantifying material issues
• Management presentation of findings
• Post-completion integration or improvement recommendations

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Reports are structured for investment committee presentation and support decision-making rather than purely documentary purposes.

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Engagement Structure

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Due diligence engagements operate on fixed fee or time-and-materials basis depending on scope certainty. Typical engagement duration is 3-6 weeks from instruction to final report, depending on complexity and management access.

We scope engagements based on specific due diligence requirements, transaction timeline, and risk areas requiring focus rather than applying standard due diligence templates.

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Get in Touch

Contact Sterling Risk Advisory to discuss due diligence requirements. We work with investors, acquirers, and lenders requiring independent commercial, operational, and regulatory assessment for investment decisions.