Diligence workstreams

Distinct areas of transaction investigation, such as commercial, financial, legal, operational and human-resources diligence. Vendor due diligence describes work commissioned by the seller, rather than a separate discipline.

Diligence workstreams in round numbers

Hypothetical: operational diligence tests supplier concentration while financial diligence reconciles annual earnings. In US$ millions for one consistent annual period, net income 2.85 plus interest 1.15, taxes 1.81, depreciation 0.02 and amortization 0.00 gives earnings before interest, taxes, depreciation and amortization (EBITDA) of 5.83. These inputs are illustrative, not verified Hanil figures; EBITDA is not cash flow.

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Hypothetical annual EBITDA reconciliation; US$ millions
ItemAmount
Net income2.85
Add interest1.15
Add taxes1.81
Add depreciation0.02
Add amortization0.00
EBITDA2.85 + 1.15 + 1.81 + 0.02 + 0.00 = 5.83

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