WHAT WE DO AND WHY IT MATTERS
«I think that, every time you see the word EBITDA, you should substitute the words 'bullshit earnings'» — Charles T. Munger
Mergers and acquisitions are critical moments where data is curated, time is limited, and psychological biases risk quietly shaping decisions.
In this environment, the quality of the underlying economics matters more than the elegance of the pitch. A single misjudged assumption, a hidden liability, or an overstated earnings narrative can turn a promising deal into a value trap long after the transaction has closed.
We conduct financial due diligence on small and mid-sized enterprises in Switzerland and Germany.
We focus on value drivers: the quality of earnings, net working capital, and net debt. Our work combines a rigorous analysis of the target’s income statement and balance sheet with a close examination of its accounting, controlling, and incentive systems. Through targeted inquiries with executive management, we assess where the economic reality diverges from the curated narrative presented in the virtual data room.
One diligence finding that adjusts the purchase price or uncovers a structural weakness is often worth more than the entire advisory fee.
In a process where confirmation bias, stress-induced judgement errors, and seller-driven optimism can cloud even experienced investors, disciplined external scrutiny is essential. As Benjamin Franklin said more than 250 years ago: “An ounce of prevention is worth a pound of cure.”
In M&A, demonstrating rigour, scepticism, and methodological clarity is not optional but a prerequisite for maintaining trust with your financiers.
WHO IS DOING IT
I bring one decade in Financial Audit, Capital Markets, and Mergers & Acquisitions at KPMG in Hamburg and PwC in Zurich—spanning dozens of audits and 47 financial due diligence projects.
My due diligence work spans Switzerland, Germany, the UK, and the United States, covering small and mid-sized enterprises as well as large listed targets across logistics, telecommunications, media, technology, infrastructure, real estate, industrials, and private equity. I have worked on buy-side and sell-side engagements for strategic as well as financial buyers.
This includes close collaboration with legal and tax due diligence teams and a practical command of different reporting regimes, such as Swiss GAAP FER, the Swiss Code of Obligations, German GAAP (HGB), and IFRS.
I also bring an entrepreneurial perspective, having evaluated two acquisitions independently from a buyer’s standpoint. I work pragmatically and leverage modern data-analytics and AI-based tools, allowing me to operate with speed, precision, and minimal bureaucracy compared to larger advisory firms.
Beyond transaction work, I have delivered guest lectures on M&A and Financial Due Diligence at the University of Basel, the University of St. Gallen, and for SECA. I hold a Master’s degree in Accounting, Financial Management and Control from Bocconi University and currently pursue doctoral research in Corporate Governance at the University of St. Gallen.
Prior to establishing his own practice, Tim Tesdorff has worked on dozens of audit and around fifty M&A projects for KPMG in Hamburg and PwC in Switzerland.
Let's Uncover the Quality of Earnings of your Acquisition Target.
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