Finance Due Diligence for Startups
Receiving a term sheet is exciting — but due diligence is where deals fall apart. CA firms that prepare their startup clients in advance dramatically improve closing rates and valuation outcomes.
Financial Statements
Audited financials for last 3 years (or since incorporation). If unaudited, investor-grade management accounts with a clear audit trail. MIS for last 12 months.
Revenue Quality
Investor will scrutinise revenue recognition: is it upfront, milestone-based, or subscription? Ensure revenue is properly deferred where applicable under Ind AS 115.
Cap Table & ESOP
Clean, up-to-date cap table in an Excel model and/or Carta. ESOP pool, vesting schedules, and any convertible notes must be documented.
Compliance Health Check
GST filings, TDS returns, advance tax payments, and ROC filings must all be current. Any notices or pending demands must be disclosed upfront — surprises kill deals.
Unit Economics
Prepare a model showing CAC, LTV, gross margin per cohort, and payback period. Investors will build their own model — give them clean inputs to work with.
Bank Statements
Last 24 months of all bank account statements. Reconcile to books. Unexplained cash withdrawals or round-trips are major red flags.
At Adeptix Global, our dedicated finance professionals work as an extension of your team — handling the heavy lifting so you can focus on client relationships and growth. Talk to our experts to learn how we can support your practice.
