Acquisitions Due Diligence

Independent regulatory due diligence to uncover governance and compliance risks in acquisition targets.

Expert Risk Assessments for Regulated Business Acquisitions

We assist regulated entities with due diligence for acquisitions, examining everything from FCA correspondence history to governance, systems and controls, complaints history, and financial crime risk frameworks. Our expertise ensures comprehensive due diligence reports, practical guidance, and a thorough understanding of the regulatory risks in any transaction.

Our methodology addresses the primary risks within the target firm’s business model, examining governance, culture, controls and regulatory risks.

Our Services Include Assessments of:

  • FCA Correspondence History: Including disciplinary actions.
  • FCA Financial Returns and Compliance: With Prudential Regulation, including group consolidation.
  • Internal Governance and Systems and Controls: Evaluated against FCA expectations and the firm’s operational capabilities.
  • Suitability: Confirmed through customer file checks where applicable.
  • Client Money and Client Assets (CASS) Controls.
  • Complaints History.
  • Senior Managers and Certification Regime (SMCR): Roles, Responsibilities, and Contracts.
  • Financial Crime Risk Framework.

How Our Process Works:

  • Initial Scoping Exercise: Assessing senior management controls, culture, regulatory history, permissions, and overall strategic fit.

  • Initial Report: Highlighting risks or issues before engaging accountants and solicitors.

  • Full Acquisition Due Diligence Exercise: Covering policies, procedures, systems and controls.

  • Detailed Risk-Based Report: Providing an analysis of implications, with a risk-assessed report presented to your board, detailing issues and business mitigation plans.

  • Expert Assistance: With your Change of Controller application.

  • Regulatory Liaison: Drafting and submitting your application and managing all follow-up with the FCA.

We can also introduce you to trusted solicitors and accountants to assist with your transaction if required. If you plan on acquiring a regulated business, get in touch with us to ensure you understand the regulatory risks involved.

Looking for Sell-Side Regulatory Due Diligence?

For those preparing for a sale or seeking investment, our team can help you anticipate questions regarding your business and senior management. An independent assessment of your regulatory environment can enhance your position in acquisitions due diligence, strengthening your value to buyers or investors. We also facilitate introductions to potential acquirers or investment companies.