Due Diligence & Risk

Financial Auditing

Independent financial due diligence and audit support aligned with Iranian Accounting Standards and IFRS.

Iranian companies report under Iranian Accounting Standards, which differ in important ways from IFRS — particularly around inflation accounting, foreign-currency translation, and related-party disclosures. Our financial team rebuilds the target's numbers into a format your board and lenders can read, and flags the adjustments that matter for valuation.

What’s Included

Quality of Earnings

Normalisation of reported EBITDA for one-offs, related-party transactions, and FX distortions.

  • Run-rate adjustments
  • Owner add-backs
  • Subsidy normalisation
  • FX impact analysis
  • Working-capital review

Tax Position Review

Verification of corporate tax, VAT, and payroll positions with the Iranian National Tax Administration.

  • Tax certificates
  • Assessed vs. declared
  • VAT reconciliation
  • Withholding compliance
  • Open assessments

Debt & Cash Walk

Bridge from reported cash and debt to net debt usable in an enterprise-value calculation.

  • Bank confirmations
  • Off-balance-sheet items
  • Shareholder loans
  • FX-denominated debt
  • Working-capital normalisation

IFRS Conversion

Translation of Iranian-GAAP statements into IFRS-equivalent format for foreign-investor consumption.

  • Revenue recognition
  • Lease treatment
  • Impairment testing
  • Deferred tax
  • Pension liabilities

Forensic Review

Targeted procedures where related-party flows or undisclosed liabilities are suspected.

  • Journal-entry testing
  • Vendor-master review
  • Cash-flow tracing
  • Inventory verification
  • Whistleblower follow-up

Statutory Audit Liaison

Coordination with the target's Iranian statutory auditor and the Securities & Exchange Organization.

  • Auditor briefing
  • SEO filings review
  • Management-letter follow-up
  • Subsequent-events review
  • Board reporting

How We Engage

1

Engagement Scoping

Define materiality, look-back period, and key value drivers.

2

Information Request

Issue a structured data request and chase outstanding items.

3

On-site Procedures

In-person review of ledgers, contracts, and physical assets at the target.

4

Red Flag Memo

Interim findings memo so deal terms can be re-negotiated early.

5

Final Report

Detailed financial DD report including adjusted EBITDA, net debt, and working-capital target.

Get a Defensible Financial Picture

Commission an IFRS-equivalent financial DD report before you fix your offer price.