Financial Due Diligence

Financial-due-diligence-Nigeria

Financial Due Diligence – helping investors make the right decision

In mergers and acquisitions, buyers and sellers must identify the risks and the opportunities associated with the business under consideration. Conducting effective financial due diligence can help buyers structure strategic transactions and avoid costly mistakes. It can also help sellers better understand the strengths and weaknesses of their position pursuant to a deal.

At PML Advisory, we conduct detailed due diligence for our clients in relation to merger and acquisition arrangement.

In order to help our Clients develop a complete picture of the financial realities of the target company, we carry out the following actions

Assess the quality of the targets earnings, analysing accounting policies and judgements
Review of contingent assets and liabilities
Evaluate management capabilities and forecasts
Identify key business drivers
Focus on profitability trends
Assess areas of risk concentration
Evaluateworking capital trends
Evaluate loan covenant compliance
Assess personnel trends and requirements

At PML Advisory we understand that no two companies or transactions are the same. Therefore, carrying out financial due diligence, we customize our approach to meet our clients’ specific needs. Our professionals have the requisite skill and experience to deliver your key expectation.

Financial Due Diligence

NOTIFICATION OF CHANGE OF PARTICULARS
When Do You Need to File a Notification?
Life and business move fast. You must notify the tax authorities if any of the
following occur:
For Individuals
Change of Name: Usually due to marriage or legal deed poll.
Change of Address: Moving your primary residence (this may affect which
State Internal Revenue Service you pay your PAYE or personal income tax
to).
Change of Employment: Transitioning from an employee (PAYE) to a
self-employed person or business owner.
Contact Information: Updates to your phone number or the email address
linked to your NIN/TIN.
Change in Business Name: If the company rebrands or changes its
registered name with the CAC.
Change in Registered Office: Moving the physical headquarters or principal
place of business.

Changes in Directorship: When directors resign or new ones are appointed.

Nature of Business: If a company shifts from, for example, "General
Contracts" to "Oil and Gas Services" (this often changes the tax rate or
applicable incentives). -
Cessation of Business: If the business stops operating entirely, you must
notify the NRS to prevent continuous "Best of Judgment" (BOJ)
assessments.

Why It Matters
Failing to update your records is more than a clerical error; it carries real-world
consequences: - - - -
Invalid Tax Clearance Certificates (TCC): If your records on the NRS portal
don't match your current CAC status, your TCC application will likely be
rejected.
Missed Legal Notices: The law considers a notice "served" if it is sent to
your last known address on file. If you’ve moved and don't receive an audit
notice, the NRS can proceed with legal action in your absence.
Penalty Accumulation: In the case of business cessation, if you don't
officially notify the NRS that you've closed, they will assume you are still
earning income and continue to charge late filing penalties.
Bank Account Freezes: With the 2026 integration of NIN-TIN-BVN,
discrepancies in your data across different agencies can trigger automated
"Red Flags," leading to temporary restrictions on your bank accounts.

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