Complete Financial Due Diligence Guide for Türkiye in 2026

Financial due diligence in Türkiye has become a mission-critical process for foreign investors, multinational groups, and local enterprises navigating a complex regulatory and tax-driven environment. In 2026, heightened enforcement, evolving accounting standards, and increased cross-border transactions make professional due diligence not only advisable but essential.

As Finlexia Turkish Accounting Firm, a top-tier full-service practice based in Istanbul and providing multilingual accounting services since 2017, we deliver rigorous, decision-oriented financial due diligence tailored to Turkish commercial realities and international expectations.

Our Turkish accountants explain what financial due diligence in Türkiye entails, why it matters, and how it mitigates risk while maximizing transaction value.

Table of Contents

What Is Financial Due Diligence?

Financial due diligence is a structured investigation of a target company’s financial health, historical performance, accounting practices, tax exposure, and sustainability of earnings. Unlike statutory audits, due diligence is transaction-focused and forward-looking.

In Türkiye, financial due diligence typically accompanies:

• Acquisitions and share purchases
• Strategic investments and joint ventures
• Company formations involving capital contributions
• Restructurings and exits

The objective is clear: identify financial risks, normalize earnings, verify compliance, and support accurate valuation.

Why Financial Due Diligence in Türkiye Is Uniquely Complex

Türkiye presents distinct challenges that require local expertise combined with international standards.

Regulatory and Accounting Specificities

Turkish companies often maintain records under:

• Turkish Tax Procedure Law (VUK)
• Turkish Commercial Code (TCC)
• IFRS or IFRS-compliant local standards (depending on size and structure)

Reconciling tax-based accounting with economic reality is a core component of effective due diligence.

Tax-Centric Financial Reporting

Financial statements are frequently optimized for tax purposes rather than investor transparency. This makes professional normalization critical, particularly in relation to:

• Revenue recognition
• Related-party transactions
• Expense capitalization
• Deferred tax positions

Working with an experienced Istanbul accountant ensures these discrepancies are identified and adjusted accurately.

Scope of Financial Due Diligence Services in Türkiye

At Finlexia Turkish Accounting Firm, our financial due diligence engagements typically include the following pillars:

1. Quality of Earnings (QoE) Analysis

We assess whether reported profits are:

• Sustainable and recurring
• Free from one-off or non-operational items
• Consistent with cash generation

This analysis is especially important in mergers and acquisitions, where valuation hinges on reliable EBITDA.

2. Historical Financial Review

We examine 3–5 years of financial data, focusing on:

• Revenue trends and customer concentration
• Cost structure and margin stability
• Working capital cycles

This allows investors to distinguish growth from volatility.

3. Tax Exposure and Compliance Review

Tax risk is one of the most material deal-breakers in Türkiye. Our review covers:

• Corporate income tax
• VAT and withholding taxes
• Social security liabilities
• Transfer pricing risks

We work closely with our tax compliance and tax planning teams to quantify exposures and propose mitigation strategies.

Financial Due Diligence and Tax Registration Risks

Unregistered or improperly registered tax obligations are common findings, especially in fast-growing or family-owned companies. Our due diligence includes:

• Verification of accurate tax registration
• Review of past filings and assessments
• Identification of penalties, interest, and audit risks

These findings directly influence purchase price adjustments and indemnity clauses.

Working Capital and Net Debt Analysis

Accurate working capital and net debt calculations are essential for transaction structuring. We:

• Normalize receivables and payables
• Identify non-operational balances
• Assess financing arrangements and hidden liabilities

This analysis protects buyers from post-closing surprises and ensures fair closing mechanisms.

Financial Due Diligence in Company Formation and Expansion

Due diligence is not limited to acquisitions. Investors entering Türkiye through company formation often require:

• Financial feasibility studies
• Capital adequacy assessments
• Compliance readiness reviews

Our integrated approach ensures new entities are established on a sound financial and regulatory foundation from day one.

Governance, Controls, and Risk Management

Financial due diligence also evaluates the robustness of internal controls and governance frameworks. Weak governance often signals:

• Financial misstatements
• Undisclosed liabilities
• Compliance failures

Our findings align closely with corporate governance best practices and provide a roadmap for post-transaction improvements.

Role of Audit Services in Due Diligence

While due diligence is not a statutory audit, audited financials significantly enhance reliability. Where necessary, we coordinate or perform targeted audit services to:

• Validate key balances
• Confirm compliance with applicable standards
• Support investor confidence

This hybrid approach is particularly valuable for foreign buyers unfamiliar with Turkish accounting norms.

Financial Due Diligence in Distressed Scenarios

In restructuring, exit, or company liquidation contexts, financial due diligence focuses on:

• Asset recoverability
• Creditor exposure
• Tax and employee liabilities

These engagements require speed, discretion, and deep local expertise to protect stakeholder interests.

Deliverables That Drive Decisions

Our financial due diligence reports are:

• Clear, structured, and decision-oriented
• Quantified in financial and tax terms
• Designed for investors, boards, and legal advisors

Each report highlights red flags, value drivers, and negotiation points, enabling informed deal execution.

As a leading Turkish accounting firm, we work seamlessly with legal, financial, and corporate advisors to deliver integrated transaction support and comprehensive accounting services in Türkiye.

Why Choose Finlexia Turkish Accounting Firm?

• Istanbul-based with deep local market knowledge
• Multilingual service for international clients
• Strong expertise in tax-driven financial analysis
• Proven track record since 2017

We bridge the gap between Turkish financial realities and international investor expectations.

Contact us for Financial Due Diligence Services in Türkiye

Financial due diligence in Türkiye is not a box-ticking exercise—it is a strategic safeguard and a value-creation tool. In an environment shaped by tax complexity, regulatory enforcement, and evolving accounting standards, professional due diligence is indispensable.

If you are planning an acquisition, investment, restructuring, or market entry in Türkiye, we invite you to contact Finlexia Turkish Accounting Firm. Our experienced team will guide you through every stage of financial due diligence with precision, transparency, and commercial insight.