Financial Due Diligence Services in Trinidad & Tobago

The hidden risk in every transaction

Most deals that disappoint do not fail because the strategic logic was wrong. They fail because the numbers were never properly tested. A target's management accounts can look healthy while masking one-off gains dressed up as recurring profit, customer concentration that threatens future revenue, deferred maintenance, under-provisioned liabilities, or related-party arrangements that quietly subsidise reported earnings. By the time these surface, often after completion, the price has been paid and the leverage to renegotiate is gone.

Financial due diligence exists to close that gap. It is the disciplined, evidence-based investigation of a target's historical and projected financial performance, its assets and liabilities, and the quality and sustainability of its earnings. Done well, it does three things: it confirms whether the business is what the seller says it is, it quantifies risks and adjustments that should be reflected in price or in the sale and purchase agreement, and it gives a buyer or seller the confidence to move quickly and decisively.

For acquirers, diligence is the difference between paying for normalised, repeatable profit and overpaying for an inflated headline figure. For sellers, a clean, well-prepared diligence position shortens the deal timetable and protects value at the negotiating table. In both cases the cost of rigorous diligence is a fraction of the cost of getting the valuation wrong.

Why it matters in Trinidad & Tobago

Doing deals in Trinidad & Tobago carries specific risks that generic, head-office diligence frameworks routinely miss. Many targets are owner-managed or family-owned businesses where the line between the company and the proprietor is blurred, personal expenses run through the company, undocumented loans to and from directors, and informal compensation arrangements are common and must be normalised before earnings can be trusted.

The local tax base is also a recurring source of hidden exposure. Corporation Tax is currently charged at a standard rate of 30%, with higher rates applying to petrochemical and certain regulated sectors such as banks. On top of that, most companies face Business Levy at currently 0.6% of gross revenue or receipts (payable where it exceeds corporation tax) and Green Fund Levy at currently 0.3% of gross revenue. A target that has under-accrued any of these, or that has open positions with the Board of Inland Revenue (BIR), carries a real liability that should land in the purchase price, not in the buyer's lap. VAT exposure matters too: with a standard rate currently at 12.5%, a compulsory registration threshold currently of TT$600,000 in annual commercial supplies, and bi-monthly returns, mis-classified zero-rated or exempt supplies are a frequent finding. Payroll is a further pressure point, PAYE, National Insurance (NIS) and Health Surcharge obligations are often under-administered in smaller firms. These rates are stated as currently applicable and should always be confirmed against the latest Finance Act.

For inbound investors looking at T&T as an entry point into the Caribbean, the challenge is sharper still: limited public financial information, financial statements that may not have been prepared to international standards, and local commercial practices that are invisible from abroad. This is precisely where local, partner-led diligence earns its fee.

How Andersen TT approaches due diligence

We run diligence as a partner-led investigation, not a junior-staffed checklist. Engagements begin with a focused scoping conversation to identify the deal rationale, the key value drivers and the specific risks that matter to your transaction, so the work concentrates on what could change the price or kill the deal, rather than producing a generic, box-ticking report.

Our process is built around quality of earnings (QoE) analysis: we strip out non-recurring, non-operational and owner-specific items to arrive at a normalised, sustainable EBITDA that a buyer can actually rely on. Around that core we test working capital trends to establish a defensible normalised level for the completion mechanism, analyse net debt and debt-like items, scrutinise revenue recognition and customer concentration, and assess the reliability of the target's forecasts.

Findings are delivered as a clear red-flag report up front, the issues that affect value, deal structure or whether to proceed at all, followed by the supporting detail. Because Andersen TT operates no in-house audit practice, our diligence is genuinely independent: we are not conflicted by an audit relationship with the target, and our only interest is the integrity of your transaction. Where a deal has cross-border dimensions, we draw on the wider Andersen Global network for international tax, transfer pricing and valuation input. Our work integrates directly with our business valuation and transaction advisory teams so price, structure and risk are considered together.

Throughout, we keep close to you. Diligence is at its most valuable when findings are discussed as they emerge, not saved up for a final report you read after key decisions are already made. We hold regular check-ins so you can react in real time, reshaping the offer, adjusting the deal structure, or commissioning deeper work on a specific concern. And because we have walked the floor of T&T businesses across manufacturing, distribution, services and energy supply chains for decades, we bring commercial judgement as well as technical rigour: we know what a normal margin, a normal receivables cycle and a normal owner's drawings look like in this market, which is exactly the context an overseas adviser cannot supply.

Our due diligence services

We tailor scope to the size and complexity of the deal, but a full engagement typically covers:

• Buy-side financial due diligence, independent investigation of a target on behalf of an acquirer, focused on value drivers, deal risks and price adjustments.
• Sell-side / vendor due diligence, preparing your business for sale, identifying and addressing issues before buyers find them, and shortening the deal timetable.
• Quality of earnings (QoE) analysis, normalising EBITDA for one-off, non-operational and owner-related items to establish sustainable, repeatable profit.
• Working-capital analysis, establishing a defensible normalised working-capital level to support the completion mechanism and avoid post-deal disputes.
• Net debt and debt-like items review, identifying all debt, quasi-debt, off-balance-sheet obligations and contingent liabilities that should reduce equity value.
• Red-flag reporting, an early, focused summary of the issues that materially affect price, structure or the decision to proceed.
• Tax due diligence, review of Corporation Tax, Business Levy, Green Fund Levy, VAT and payroll positions, open BIR matters and historical exposures, coordinated with our corporate tax advisory and VAT advisory specialists.
• Forecast and projection review, testing the reasonableness of management's business plan and the assumptions underpinning it.
• SPA support, input into completion accounts, locked-box mechanisms, warranties and indemnities so diligence findings translate into deal protection.

Signs you need diligence support

Due diligence is for you if you recognise any of the following:

• You are acquiring a business in Trinidad & Tobago and the financial information you have been given is limited, inconsistent or hard to interpret.
• The target is owner-managed or family-owned, with personal and business affairs intertwined.
• You are an overseas investor entering the T&T or wider Caribbean market and need local eyes on the numbers and the tax position.
• You are preparing to sell and want to control the narrative, and the timetable, before buyers run their own review.
• You are raising finance or bringing in a new shareholder and need credible, independent numbers.
• A headline EBITDA or growth story looks strong but you cannot yet tell how much of it is sustainable.
• You suspect, but cannot prove, that tax or statutory liabilities have been under-provided.

Why choose Andersen TT

Andersen in Trinidad & Tobago is the only accredited member firm of Andersen Global in the country, ACCA and ICATT accredited, with partners holding more than 50 years of combined experience. That gives you Big-Four diligence capability, quality of earnings, working-capital and net-debt analysis, tax and SPA support, delivered by partners who are personally on the engagement, not by a rotating team of juniors.

Our independence is structural, not just stated. We run no in-house audit practice, so there is no audit relationship to compromise our objectivity and no conflict when we report on a target. Compared with the Big Four, we are faster, more accessible and better suited to the SME, family-business and mid-market international transactions that larger firms under-serve. Compared with relying on in-house finance or the seller's own numbers, we bring rigour, independence and a deal-tested eye for what actually moves value. And because we are part of Andersen Global, cross-border deals get seamless access to international tax, transfer pricing and valuation expertise when they need it.

How we work

A typical engagement follows a clear, time-bounded path:

1. Scoping, we agree the deal rationale, the key risks and the precise scope, so the work targets what matters to your transaction.
2. Information request, we issue a structured data request and set up secure access to the target's financial records.
3. Analysis, we perform the quality-of-earnings, working-capital, net-debt and tax review, and raise questions with management as we go.
4. Red-flag report, we deliver an early summary of deal-critical findings so you can act before completing the full report.
5. Full report and SPA input, we issue the detailed findings and feed them into price negotiations, the completion mechanism and the warranties and indemnities.
6. Post-deal support, where useful, we help translate diligence findings into the first 100 days, and our CFO advisory team can support integration. For wider context on the local tax environment, see our 2026 Trinidad Budget summary.