This Due Diligence Template has been prepared by SPHM Hospitality to carry out the following analysis:

● Complex Financial Statement Analysis
– DuPont Analysis, Profit Variance Analysis (Bridge Charts), Sources and Uses of Liquidity

● Income Statement Analysis
– Overall Sales Analysis (Quality of Earnings Schedule, Like-for-Like Analysis)
– Seasonality (creating a cycle plot chart, de-seasonalizing sales and calculating seasonal adjustments)
– Product Analysis (Key Portfolio Statistics, Product Profitability Distribution, Profit Variance Analysis by Product, Price-Volume-Mix Analysis, Product Ramp-up)
– Customer Analysis (Attrition (Churn) Analysis, Contract Expirations and Pipeline, Customer Concentration)
– Employee Analysis (Employee Cost Summary Schedule, Headcount and Salaries, Employee Turnover and Retention, Employee Headcount Statistics)
– Budgeting And Forecasting (Assessing Budget Accuracy, Defining Scenarios Based on Historic Volatilities, Building a Trend Forecast, Interim Budgets, Current Forecast Status By Products, Estimating Reasonableness of the Outlook)

● Balance Sheet Analysis
– Fixed Assets (Fixed Asset Roll Forward, Capex Detalization Schedule)
– Inventory (Inventory Structure, Inventory Movements and Balances, Days Inventory Outstanding, Inventory Seasonality, Inventory Aging)
– Cash (Cash Conversion Cycle (CCC))
– Net Working Capital
– Net Debt (Debt and Debt-Like Items)​