Financial Due Diligence Report: A Comprehensive Guide to KPMG's Approach

Strategy 3: The Earn-Out Trigger

If the KPMG PDF flags "customer concentration risk" (e.g., one client is 40% of revenue), insert an earn-out clause. The seller only gets full price if that client renews contract post-close.

DRAFT: Financial Due Diligence Report (KPMG Style)

Confidential Prepared for: [Acquirer Name / Private Equity Sponsor] Target: [Target Company Name] Date: [Current Date] Project Code: [e.g., KPMG-2026-XXX]

B. Quality of Earnings (QoE) Analysis

This is the core of the report. It analyzes the sustainability and recurrence of profits.