Due Diligence in UAE

Challenge

• Our client was evaluating an attractive business proposition to invest in a specialized product trading and technical services provider in the UAE. The client had industry knowledge and had a favorable view of the target company but wanted to determine the right transaction price for the acquisition.

Work done and Impact

• • Our team of internal auditors and analysts conducted a detailed due diligence of the target company. This include in-depths analysis of their numbers as well as review of internal systems and controls

Action / Impact:

Were able to identify some key issues such as excessive dependencies of some customers and a steady marginal decline in revenue from their more profitable products.

There were also some accounting practices relating to provisions were incorrectly followed, as also some intercompany loans which were irregular.

The report helped our client to assess the projected business better to make a more informed valuation decision. They were also able to address compliance issues by making process changes after they completed the acquisition