Financial Due Diligence
Can I believe the story that management told?
Shiny decks hide messy books, and one miss can sink returns. Verified Metrics brings Big-4-grade models, AI-forensic checks, bank proof-of-cash, and speed. All at startup-friendly cost.
30-minute walkthrough.
No commitment.
Most FDD tools aggregate data. We interrogate it.
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The questions that keep you up before IC.
Answered in hours, not weeks.
How do I find fraud in the financials?
❌ Pain Point
Revenue stuffing, aggressive accounting, and earnings manipulation slip past manual review. One missed red flag on the P&L, and you're explaining to LPs why the write-down happened three months post-close.
✓ How Verified Metrics Helps
Verified Metrics runs an automated Beneish M-Score on every deal, flagging manipulation risk across 8 financial ratios. Red flags on receivables inflation (DSRI), margin quality (GMI), and asset quality (AQI) surface immediately with full calculation transparency.
How long until they run out of money?
❌ Pain Point
"We have 12 months of runway" often means 6 months by the time you close. Miss the true burn rate and you're funding a distressed situation instead of a growth story.
✓ How Verified Metrics Helps
Verified Metrics calculates live runway from bank data and the GL. Shows months remaining based on 4-month average burn, updated automatically as cash moves. For this deal: 8.6 months runway with $238K monthly burn. No guessing, no stale spreadsheets.
Is their growth real or just cash burn?
❌ Pain Point
300% growth looks impressive until you realize they're burning $5 to generate $1 of revenue. Without efficiency metrics, you miss unsustainable unit economics until it's too late.
✓ How Verified Metrics Helps
Verified Metrics Scorecard compares revenue growth efficiency (dollars of revenue added per dollar of cash burned) against benchmarks. See immediately if they're at 0.2x (burning cash) or 1.0x+ (capital efficient)—and whether that's improving or deteriorating.
What's my customer concentration risk?
❌ Pain Point
80% of revenue from one customer doesn't show up in the summary deck. That customer churns six months after close, and suddenly you're writing down the entire investment.
✓ How Verified Metrics Helps
Verified Metrics analyzes revenue by customer from the GL and surfaces concentration risk automatically. See top 5 customers, % of total revenue, and trend over time. Spot single-point-of-failure risk before it kills your returns.
Can I accelerate my diligence process?
❌ Pain Point
Manual tie-outs, CSV reconciliation, and founder back-and-forth push IC dates. While you wait for clean data, a faster fund is already at term sheet and you've lost another competitive process.
✓ How Verified Metrics Helps
Verified Metrics auto-consolidates from source systems, standardizes to institutional taxonomies, and builds diligence packs on demand in 24-72 hours, not 3 weeks.
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Auto Data
Direct API integration with QuickBooks, Xero, and Plaid (bank feeds). AI maps chart of accounts and normalizes data to institutional taxonomies—so analysis starts from clean, audit-ready inputs.
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Instant Models
IFRS-compliant models auto-populate with normalized financials. Revenue recognition, working capital, and EBITDA adjustments pre-calculated—ready for IC review in hours.
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Terminal
Query journal-level entries, surface related-party transactions, or decompose revenue by cohort. Every answer cited to source data—no black-box outputs, no hallucinations.
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Team of Professionals
CFA and CPA professionals on standby for second-opinion review. Validate assumptions, stress-test adjustments, or challenge your thesis—at a fraction of Big-4 cost.
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QofE Databook
Normalized financial statements, EBITDA adjustments, working capital analysis, and revenue decomposition. Excel-native, fully auditable, IC-ready.
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Real-World scenario.
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The Problem
PE analyst reviewing Series B SaaS target. Management deck shows 200% YoY growth, but cohort data isn't in the data room. Analyst has 72 hours to IC and needs to validate revenue quality, customer concentration, and churn assumptions.
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The Solution
Connect QuickBooks and Stripe via API. Terminal analyzes all revenue by customer cohort, flags 65% revenue concentration in top 3 customers, identifies 2 related-party transactions totaling $450K, and highlights revenue recognition timing issues. Red Flag Memo ready in 8 hours. Deal terms renegotiated based on findings.
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The Outcome
Deal closed with revised valuation reflecting customer concentration risk. Portfolio company now monitored daily via Verified Metrics—early warning system for churn and cash burn.
Frequently asked questions
Most deals get IC-ready deliverables in 48–72 hours. Complex multi-entity structures may take 5–7 days.
Direct API with QuickBooks Online, Xero, and Plaid (bank feeds). NetSuite and other enterprise systems via Professional Services.
Yes. We support multi-currency consolidation and international GAAP standards (IFRS, local GAAP).
We work with CSV exports and PDF bank statements—the AI still maps and normalizes the data. Professional Services handles complex or legacy systems.
No. We handle Seed through growth-stage, plus lower middle-market M&A with multi-entity consolidation.
Yes. Our platform connects to multiple GL systems simultaneously, eliminates intercompany transactions, and produces consolidated financials with full audit trail. Particularly useful for platform acquisitions, roll-ups, and carve-outs.
QoE databook, Red Flag memo, 3 financial statements, tear sheets, and full Excel models. All auditable with source citations.