
The financial diagnosis of the company is essential to make a complete point on the strengths and weaknesses of the company, and this from an external point of view, in particular that of the potential investor. It is a starting point that highlights the critical points to be improved and the strong points to be developed with a view to the transfer.
The financial diagnosis of the company will also highlight the need to carefully prepare the company several months or even years before the transfer.
Strategic Diagnosis of the Company
Inevitable questions from the investor:
– In what type of market does this company operate (growth rate, competitive intensity…)?
– What is its strategy to exploit this market (differentiation or cost domination…)?
– What can I do with it (develop or optimize it, what are its potentials…)?
The financial diagnosis of the company anticipates the fundamental questions of any investor; it helps the manager to position, or even reposition, his company in relation to the investor profiles that he will have previously defined with our assistance.
Economic and Financial Diagnosis of the Company
Once the strategic diagnosis has been established, it is necessary to demonstrate the viability or even the economic attractiveness of the SME and to analyze its financial capacity in relation to its development needs to ensure its sustainability.
The economic and financial diagnosis will also make it possible to determine the real need for financing in correlation with the development plan.
Operational Diagnosis of the Company
Once the company has a strategy and adequate financial means, it remains for the future investor to ensure that it has efficient operational capacities. He will make a critical analysis of such or such operational aspects according to the type of the target company. For example, the critical point will be the expertise of the teams for a service SME; the factory for an industrial company; the logistics for a distribution company, etc.
SMEs also have a recurring weakness: the intuitu-personae of its leader. The implementation of a number two, or a middle management, could require a year or more of delay.
Legal Diagnosis of the Company
It is necessary to verify that there are no legal obstacles to the future fund-raising from an internal point of view (shareholders’ agreement, approval clause,…) or from an external point of view (license contract linked by intuitu-personae,…). It is also necessary to identify potential or proven legal actions against the company, including environmental and social risks.






