Byline: Matthew Kayser
While conducting buy-side diligence for a home appliance manufacturer, Arunima Motiwala uncovered a mismatch others had overlooked.
“The target had recently launched a premium product line with longer warranties and higher price points, yet warranty accruals had not increased in line with sales, she says. Management cited improved product quality, but the math didn’t add up.”
That insight wasn’t just financial, it was strategic. On closer inspection, Motiwala and her team found that marketing campaigns were promoting generous replacement guarantees that delayed formal claims, temporarily suppressing warranty costs. The expenses weren’t gone; they were simply being deferred. She flagged a $4.6 million shortfall in accruals, adjusted net debt models, and recommended a deal safeguard to protect her client from post-close surprises.
The analysis directly contributed to a $4 million reduction in the final purchase price, an outcome that balanced financial rigor with long-term risk protection.
What Diligence Really Means
Motiwala doesn’t approach financial due diligence like a checklist.
“In cross-border transactions, context matters just as much as numbers,” she says. “You have to understand the story behind the financials: how people interpret value in different cultures and business environments.”
After over a decade in M&A strategy, Motiwala has earned a reputation for precision, discretion, and deep listening.
“Clients don’t come to me just for models,” she explains. “They come when they need clarity.”
Motiwala has recently founded a company to offer clarity without the bureaucracy of big firms: “I wanted to deliver independent, high-quality insights with a personal touch. That means staying responsive, staying sharp, and staying human.”
Tackling Complex Financial Discrepancies in M&A
Arunima’s expertise extends far beyond the numbers; it’s her ability to uncover hidden challenges and navigate the intricacies of complex transactions that sets her apart.
In another notable buy-side diligence process for a SaaS company reporting $30 million ARR, Arunima noticed a significant disconnect between the reported revenue growth and the company’s customer behavior. Upon closer examination, she discovered that the company was issuing renewal invoices before contracts were signed, recognizing revenue immediately, a practice that, while allowed by internal policies, misrepresented the company’s true financial picture. This led to an understatement of deferred revenue by $1.8 million and an overstatement of ARR by nearly $6 million.
Arunima took the lead in addressing this issue, guiding discussions with her client and the legal team to ensure the transaction remained fair and accurate. She played a key role in adjusting the deal terms, refining the working capital peg to reflect the true deferred revenue, and linking a $3 million earnout to actual customer collections. These strategic moves reduced the upfront purchase price by $2.5 million while still keeping the deal on course.
This approach not only safeguarded the financial integrity of the transaction but also ensured that her client was protected from any future discrepancies. Arunima’s ability to balance technical precision with client-focused advocacy is what makes her highly regarded in M&A. Her skills not only bridge communication gaps but also ensure financial integrity, especially in cross-border M&A deals.
The Future Is Fluent
Motiwala believes the future of diligence lies in cultural fluency.
“In global M&A, nuance matters,” she emphasizes. “What’s normal in New York can be very different in Mumbai or Munich. The best advisors bridge those gaps.”
Her work spans various sectors, including retail, transportation, startups, and multinational corporations. That range, Motiwala explains, sharpens her instincts. “When you’ve seen what can go wrong, and how fast, you learn to ask better questions.”
Motiwala has judged global awards, such as the Stevies and Globee, published thought leadership across respected platforms, and been tapped to advise cross-border innovation ventures. But what drives her is simple: “Smart decisions start with better questions. That’s where I come in.”
Changing the Future of Global M&A
In the years ahead, Motiwala is focused on building her next project into a recognized resource in global diligence. Alongside that, she hopes to speak at international forums, mentor more women in finance, and collaborate with accelerators in emerging markets.
“I want to help investors and founders navigate complexity with confidence,” Motiwala concludes. “And I want to do it in a way that’s ethical, inclusive, and deeply human.”
Discover more about Arunima Motiwala’s work in financial due diligence and cross-border M&A strategy on her LinkedIn.
