Due Diligence, Transaction Advisory, and Business Assurance

Startup Buddy provides independent verification of financial, operational, and governance health before capital transactions close. We protect investors through objective financial inspection and assist founders in building companies prepared for institutional scrutiny.

Startup Buddy is an independent transaction advisory and business assurance practice. It operates two structured pathways: Investor Shield, which provides pre-investment due diligence for capital allocators, and Founder Ready, which conducts internal business health reviews to prepare growing companies for audits and fundraising.

Financial reports and documents laid out for review

Startup Buddy

Two specialized pathways

Capital transactions & assurance, from both sides of the table.

Startup Buddy operates two distinct advisory pathways designed for different transaction stakeholders.

For capital allocators

Investor Shield

Independent verification before investment — quality of earnings, EBITDA normalisation, tax audits.

  • Independent verification before investment
  • Quality of earnings, EBITDA normalisation, tax audits
  • Red Flag Report & deal structuring inputs
For founders & boards

Founder Ready

Pre-fundraising internal health review — internal controls, filing checks, MIS health.

  • Pre-fundraising internal health review
  • Internal controls, filing checks, MIS health
  • Business Health Report & action plan
Pathway 1 · Investor Shield

Independent due diligence for investors evaluating private market opportunities.

Investors commit capital based on information presented by founders. Investor Shield independently verifies underlying records, agreements, and accounts to substantiate operating metrics and identify hidden liabilities before definitive transaction agreements are signed.

Scope of review

Financial Due Diligence

  • Revenue Quality & Sustainability: Evaluating recurring revenue streams, customer concentration, contractual stability, deferred revenue, and accounting recognition practices.
  • Profitability & Cash Realisation: Normalising EBITDA, analyzing gross margin trends, assessing cash-conversion cycles, and reviewing debt serviceability.
  • Financial Statement Quality: Reviewing general ledger integrity, accounting adjustments, audit qualifications, related-party transactions, and contingent liabilities.

Tax & Statutory Due Diligence

  • Direct Tax & Withholding: Auditing corporate income tax compliance, advance-tax calculations, TDS deposits, 26AS/AIS reconciliations, and open assessments.
  • GST & Indirect Taxes: Verifying GST registration, filing timeliness, Input Tax Credit (ITC) reconciliations, supply classification, and outstanding department notices.
  • Labour Law Contributions: Auditing statutory registration, payroll reconciliations, and monthly deposits for Provident Fund (PF) and Employee State Insurance (ESI).

Operational Due Diligence

  • Internal Financial Controls: Evaluating maker-checker workflows, expenditure limits, payment authorisations, and segregation of accounting duties.
  • Standard Operating Procedures (SOPs): Assessing process documentation, execution adherence, and operational reliance on company founders.
  • Procurement & Inventory Controls: Reviewing vendor onboarding, purchase-order matching, stock verification, and inventory valuation practices.

Legal, Regulatory & Secretarial Inspection

  • Corporate Records: Reviewing constitutional documents, MCA statutory filings, board minutes, share allotments, and ESOP registers.
  • Material Contracts: Examining commercial agreements, termination clauses, change-of-control covenants, and active disputes.
  • IP & Employment: Reviewing IP assignment agreements, employment terms, and regulatory licensing compliance.

Governance & decision framework

  • Assessing authority structures, delegation limits, and concentration risks where critical business decisions depend on single individuals.

Deliverable: Due Diligence Report

Every Investor Shield engagement delivers a structured, decision-ready report:

  1. Executive Summary & Investment Highlights: Concise transaction overview summarizing material findings that support or challenge the investment thesis.
  2. Key Financial Observations & Risk Prioritisation: Detailed findings on revenue quality, normalised margins, working capital, and financial exposures.
  3. Red Flag Report & Tax Exposure Summary: Categorised high-severity operational risks and quantified contingent tax liabilities.
  4. Compliance, Governance & Internal Controls: Objective assessment of the target company’s statutory standing, operating controls, and process maturity.
  5. Recommendations & Deal Structuring Inputs: Actionable guidance regarding conditions precedent (CP), indemnity caps, escrow allocations, and post-closing governance.
Pathway 2 · Founder Ready

Comprehensive business assurance for founders preparing for institutional capital.

During periods of rapid business expansion, leadership prioritises commercial execution, which often leaves internal finance, compliance, and governance processes unreviewed. Founder Ready provides an objective internal diagnostic across operations to identify and resolve vulnerabilities before entering formal investor due diligence.

Scope of review

Finance Function & MIS Health

  • Auditing chart of accounts consistency, bookkeeping practices, and whether monthly MIS reports provide reliable data for management decisions.
  • Reviewing cash-flow forecasting visibility, short-term liquidity planning, and budget variance tracking.

Tax, Statutory & Secretarial Posture

  • Inspecting filing records across GST, TDS, advance tax, PF, and ESI to identify past defaults, calculation discrepancies, or overdue filings.
  • Reviewing ROC/MCA secretarial filings, statutory registers, and regulatory operating licences for expiration or non-compliance.

Governance, Controls & Risk

  • Evaluating maker-checker workflows, dual-control bank authorizations, and formal delegation matrices.
  • Identifying operational workflows and decision channels that rely excessively on founder intervention.

Business Process & Operational Scalability

  • Reviewing process documentation across procurement, billing, payroll execution, and inventory tracking.
  • Identifying manual bottlenecks and automation opportunities within the operating finance engine.

Investor & Growth Readiness

  • Reconciling the cap table, share allotments, and ESOP documentation against corporate registers.
  • Structuring an organised virtual data room (VDR) to prevent information friction during future investor reviews.

Deliverable: Business Health Report

Every Founder Ready engagement concludes with a comprehensive diagnostic roadmap:

  1. Business Health Score & Executive Summary: A plain-language assessment of operational standing across finance, statutory compliance, and governance.
  2. Finance Function & MIS Evaluation: An objective evaluation of internal financial reporting and ledger integrity.
  3. Compliance & Statutory Exposure Report: An itemised summary of outstanding statutory filings, historical exposure risks, and recommended corrections.
  4. Governance & Controls Diagnostic: Practical steps to institutionalise processes, eliminate single-person dependencies, and formalise approval limits.
  5. Investor Readiness Action Plan: A prioritised checklist of operational, financial, and documentation adjustments required ahead of fundraising.
Operating independence & professional confidentiality

Objective findings. Zero conflict.

Startup Buddy operates transaction reviews with functional independence. We do not act as statutory balance-sheet auditors for companies undergoing our diligence reviews, nor do we act as capital brokers or take success fees on transactions.

All sensitive corporate documentation, cap tables, and general ledgers are handled with strict professional confidentiality by assigned corporate finance teams.

  • 01

    No audit conflicts

    Diligence reviews stay independent of statutory audit relationships.

  • 02

    No capital broking

    No broker role and no success fees on transactions.

  • 03

    Strict confidentiality

    Sensitive documentation handled by assigned corporate finance teams.

Frequently asked questions

Answers for diligence engagements.

  • No. Startup Buddy is an independent transaction advisory and diligence practice. We evaluate financial records, statutory filings, and operating controls to report factual findings and risks. We do not recommend whether to buy or sell securities, nor do we provide investment return guarantees.

  • Investor Shield is commissioned by investors, funds, or family offices to evaluate a target business independently before committing capital. Founder Ready is commissioned directly by company founders or boards to identify and resolve internal deficiencies before approaching investors.

  • The duration of a review depends on transaction complexity, operational volume, multi-entity corporate structures, and the availability of documentation.

  • Our professionals have conducted reviews across sectors including Technology, SaaS, E-Commerce, Logistics, Fast-Moving Consumer Goods (FMCG), and Healthcare.

  • A statutory audit checks whether historical financial statements comply with general accounting standards. Our due diligence examines commercial reality: the sustainability of revenue recognition, normalised operational cash flows, unrecorded tax contingencies, internal control weaknesses, and founder dependency.

Protect capital and verify transactional health.

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