Due Diligence
Know the truth about a company before you invest
Due diligence is an independent review of a company's financial position before an acquisition, investment, or partnership. JB Solutions analyzes financial statements, liabilities, and risks, calculates fair business value, and delivers a report with red flags and recommendations. Delivery from 10 business days, starting from 300,000 KZT.
When you need this
You are buying a business or an equity stake
You are entering a partnership with a new counterparty
You are preparing your company ahead of raising investment
You are evaluating an educational project such as a school or kindergarten
What's included
- Financial condition report
- Liability and risk analysis
- Business valuation (DCF or multiples)
- Red flags with recommendations
- Negotiation summary
Process
We compile a document list and request access.
We review financial statements, contracts, and liabilities.
We calculate fair value and identify risks.
We deliver the final report with findings and recommendations.
Pricing
Price depends on company size and data availability.
What due diligence examines
Due diligence answers the key question for any buyer or investor: does the actual state of the business match what the seller presents? Strong-looking revenue can conceal dependence on a single income source, hidden expenses, tax exposure, or a business running on borrowed money.
We examine four layers. Financial: real revenue, margins, cash flows, and the separation of operating and financing activities. Liabilities: loans, borrowings, pledges, and hidden debts. Tax: risks of additional assessments and penalties from unrecorded transactions. Valuation: fair business value using DCF or market multiples, so you do not overpay.
The output of a review is not just a list of risks but also solutions: how to structure the deal, which warranties to require from the seller, and what to walk away from. In a private school case study, we proposed an alternative structure for the investor that offered a larger equity stake, a lower investment amount, and isolation from legacy risks.
Review examples from our practice
The figures below come from published JB Solutions case studies. Full breakdowns are available in the case studies section.
| Project | Duration | Result |
|---|---|---|
| Private school (investor entering equity) | 3 weeks | 4 critical risk areas identified: subsidy dependency (28% of revenue), hidden expenses, tax risks, no accounting records. Two deal structure options provided |
| Computer club chain (160-plus computers, two cities) | 15 business days | 5 key risks across three data sources, roadmap for restoring accounting transparency |
What to do when a company has no proper accounting records
A common situation in Kazakh SMEs: no management accounting, with some transactions handled in cash or through personal accounts. This is not a reason to skip the review; it is itself an important finding about the business.
In these cases we reconstruct the financial picture from several years of bank statements and a structured interview series with the owner, as we did in the private school case study. The approach takes longer but delivers an honest answer about actual profitability rather than relying on the seller's verbal account.
FAQ
- How much does due diligence cost?
- From 300,000 KZT. Price depends on company size and data availability.
- How long does a review take?
- 10 to 17 business days, covering data request, financial statement and contract review, valuation, and final report.
- What do I receive at the end?
- A financial condition report, liability and risk analysis, business valuation using DCF or multiples, red flags with recommendations, and a negotiation summary.
- Do you review educational projects?
- Yes. We have experience reviewing schools and kindergartens, including analysis of subsidy dependency and tax risks.
- What documents are required?
- Bank statements, financial and tax reports, contracts, and liability data. We compile the exact list in the first 1-2 days, tailored to the specific transaction.
- What if the company has no management accounting?
- We reconstruct the financial picture from bank statements and interviews with the owner.
- Do you review legal risks?
- Yes. The project team includes a financial analyst and legal support. We review contracts, liabilities, and corporate structure.
- Do you help structure the deal after the review?
- Yes. We prepare recommendations on deal structure, term sheet terms, and corporate governance.
Discuss your task
We respond within 1 business day