DD Tool User Guide

Complete the process in 4 steps — from inputting financial data to generating DD reports.

Steps

Step 1

Enter Basic Information

Click "New Project" and enter the basic information of the target company.

Project Name— Target company name (for management purposes)

Industry— Select from 8 industries (Manufacturing, Construction, Wholesale, Retail, Food Service, IT, Professional Services, Real Estate)

Sub-industry— TKC BAST classification. Enables TKC benchmark comparison when entered.

Capital— In JPY. Enables MOF benchmark comparison when entered.

Year Founded / Employees / Fiscal Year End— Used for local benchmark threshold selection.

Step 2

Enter Financial Data

Enter the Balance Sheet (BS) and Profit & Loss Statement (PL) for each period. At least 2 periods are required.

Balance Sheet (17 items)— Breakdown of current assets, fixed assets, current liabilities, long-term liabilities, and net assets

Income Statement (11 items)— Revenue, COGS, SG&A breakdown, non-operating income/expenses, extraordinary items, corporate taxes

CSV Import— Bulk import financial statement data from CSV

Balance Check— Displays discrepancies in real time. Instantly detect missing entries.

Step 3

Enter Supplementary Information (Optional)

Enter additional information for more accurate analysis.

Key Customers & Suppliers— Revenue/purchase ratio of top 5 companies. Used for concentration risk assessment.

Owner Compensation— Actual amount and market level. Used for EBITDA normalization adjustments.

Related Party Transactions— Documented as a risk factor

Interest-bearing Debt Details— Details of lenders, interest rates, and repayment dates

Step 4

Run Analysis & Generate Report

Click "Save & Start Analysis". Analysis of 6 metrics and benchmark comparison completes in seconds.

Instant Analysis— Analysis completes in seconds after input validation

RAG Assessment— Automatically assigns a 5-level risk rating (Red to Green) to each metric

Report Export— One-click export in Markdown format (Marp-compatible)

6 Analysis Metrics

Normalized Earnings (EBITDA)

Actual earning power after owner compensation adjustment. Margin of 10%+ is Green.

Net Interest-bearing Debt

Net debt after deducting cash. Within 3x EBITDA is Green.

Working Capital (CCC)

Cash Conversion Cycle: receivables collection → inventory turnover → payables. Shorter is better.

Current Ratio

Short-term solvency. 150%+ is Green.

Equity Ratio

Financial stability. Assessed by industry-specific thresholds.

Operating Profit Margin

Core business profitability. Compared against industry benchmarks.

Reading RAG Status

Status	Meaning	Recommended Action
Red	Critical	Potential deal breaker. Detailed investigation required.
Red-Amber	Serious Concern	Serious concern. Additional verification recommended.
Amber	Caution	Moderate risk. Subject to monitoring.
Amber-Green	Generally Good	Minor concerns present
Green	Good	Healthy

Benchmark Comparison (3 Types)

Local Benchmark

METI (Ministry of Economy) SME Indicators

Always displayed. Ranked by 6 metrics × 5 points = 30 points max.

MOF Benchmark

Financial Statements Statistics of Corporations (Ministry of Finance)

When capital is entered. Compares 8 metrics by capital tier.

TKC BAST Benchmark

TKC National Association data from 260,000 companies

When sub-industry is entered. Compared against profitable companies in the same industry.

Report Structure

Export Markdown (Marp-compatible) reports with the "Export Report" button. Ready to use as presentation slides.

1Title Page
2Executive Summary
3Risk Summary (RAG Assessment Overview)
4Detailed Financial Analysis
5Local Benchmark Score
6MOF/TKC Benchmark Comparison
7Disclaimer

Back to DD Tool