Financial Due Diligence Services
Financial due diligence tests whether a target's reported numbers survive contact with its source documents. Shepi runs that analysis on 100% of general ledger transactions — EBITDA normalization, proof of cash, revenue quality, and working capital — starting at $1,000 per project.
100%
GL transactions analyzed
Days
Not four to eight weeks
$1,000
Per-project pricing
What Financial Due Diligence Covers
Financial due diligence (FDD) is the workstream that validates the numbers behind a transaction. It is broader than a quality of earnings analysis in name but overlaps almost entirely in practice on lower-middle-market deals: the deliverable is a defensible adjusted EBITDA plus the balance sheet and working capital context needed to price and finance the deal.
Earnings normalization
Owner compensation, personal expenses, related-party rent, one-time items
Proof of cash
Monthly tie-out of recorded revenue and expense to bank activity
Revenue quality
Recurring vs one-time revenue, customer concentration, price vs volume
Working capital
Historical levels and a normalized peg for the purchase agreement
Balance sheet review
Unusual balances, deferred liabilities, related-party accounts
Anomaly detection
Journal-entry patterns, reclassifications, and unsupported adjustments
Scope by Deal Type
| Deal type | Primary focus | Typical scope |
|---|---|---|
| SBA-financed acquisition | Debt service coverage on sustainable cash flow | 3 yrs + TTM, proof of cash, adjustment evidence |
| Search fund / ETA | Whether the seller's add-backs hold up | Full QoE plus concentration and owner-dependency review |
| PE platform or add-on | Comparability across periods and entities | Multi-entity consolidation, working capital peg |
| Sell-side preparation | Defending the asking multiple pre-market | Adjustment schedule with support, red-flag remediation |
How Shepi Delivers It
Ingest the data room
General ledger, trial balance, financial statements, bank and credit card statements, payroll registers.
Reconcile and map
Chart of accounts mapping, trial balance reconciliation, and bank coverage checks run automatically.
Analyze every transaction
Rather than sampling 10–20% of the GL, Shepi scans all of it for adjustment candidates and anomalies.
Review and decide
Each proposed adjustment carries its supporting transactions. Accept, reject, or edit — the bridge recalculates.
Deliver the package
Narrative report plus a working Excel model your lender or counsel can audit line by line.
Engagement Options
| Self-Service | Done-For-You | |
|---|---|---|
| Price | $1,000 | $5,000 |
| Who runs the analysis | You, in the platform | Shepi team, with you reviewing |
| CPA review of adjustments | No | Yes — licensed CPA review |
| Best for | Early screening, sell-side prep, internal validation | Lender- and buyer-facing diligence |
| Deliverables | PDF report + Excel model | PDF report + Excel model, CPA-reviewed |
Self-service output is a seller- or buyer-prepared package with no CPA review — useful for screening and internal work, but most lenders will not accept it in place of independent analysis. Neither track is an audit, review, or attestation engagement, and Shepi does not issue CPA opinions. See the scope of work.
Timeline and Data You'll Need
Financial statements
P&L and balance sheet, 3 fiscal years plus TTM through the last closed month
General ledger
Full transaction export for the same period — the backbone of the analysis
Bank & card statements
Every operating and credit account, no month gaps
Payroll & tax returns
Payroll registers and filed business returns to corroborate the books
With a complete data room, first-pass analysis lands in hours. CPA-reviewed engagements finish in days rather than the four to eight weeks a traditional firm needs.