Due Diligence is a process by which all the information relevant to making a decision on a particular transaction comes to light. It helps in;
- Identifying issues related to transactions, facilitating early tackling
- Establishing of true value or cost of a business transaction
- Empowering to negotiate the best terms during transactions
All businesses involved in acquisition or mergers as buyers or sellers must ensure that all financial information exchanged are verified and accurate, not only to prevent the buyers from paying more than the purchase price (or in the seller’s case, receiving less than the asking price), but also to ensure that their governance and risk management objectives are fulfilled. An experienced due diligence team will help you recognize possible risks and potential opportunities.
Objectives of Due Diligence
- To investigate the affairs of business as a prudent business person
- To confirm all material facts related to the business
- To assess the risks and opportunities of a proposed transaction
- To reduce the risk of post-transaction unpleasant surprises
- To confirm that the business is what it appears to be
- To create a trust between two unrelated parties
- To identify potential deal killers in the target and avoid a bad business transaction
- To verify that the transaction complies with investment or acquisition criteria
Our approach starts with developing a program specifying business purpose of the acquisition, critical goals and objectives. We then designate a team of professionals with right combination of experience and set up a timetable for completing each step of the assignment. This is followed by a criteria on what and how information will be collected and retained. We always make it a point to communicate issues as and when discovered and always prior to the issuance of our written report.
Due Diligence Process
Using proprietary Intelligence for successful transactions, our teams can substantially enhance your probability of success by understanding your objectives, developing mutually agreed procedures, providing professional strategic, commercial and financial due diligence with excellent regional intelligence, providing regular reporting which links commercial and financial issues to your strategic objectives, facilitating decision making and transaction negotiations and assisting with post transaction implementation procedures.
How can we help you
- Financial & Accounting Due Diligences
- Strategic Due Diligence
- IT / System Due Diligence
- Operational Due Diligence including
- Commercial / Market Feasibility Studies
- Human Resources – review processes, outsource providers, etc.
- Internal Controls Diligence
- Risk Management – assess target profile and risk focus areas, Regulatory / Compliance diligence
- Legal & Tax Due Diligence services are not done by us directly, but we partner with specialists in the relevant areas for these services.
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