Information

While investing funds into a high value project, investors like to confirm all material facts relating to purchasing the investment and determine whether it fits his return requirements, risk tolerance, income needs and asset allocation goals. This helps him to determine where the business is heading, what market factors may affect the stock’s price and how volatile the stock is. The investor then has a better navigation on whether the investment is right for him, and how much and when to purchase it. This process of performing investigation is termed as Due Diligence

The scope of Due Diligence is boundless. It does not limit to buyers or investors; sellers may also perform due diligence on buyers.

Types of Due Diligence :-

Financial Under this, financial information is verified and business performance is assessed. Areas such as earnings, assets, liabilities, cash flow, debts and management are considered.
Commercial Commercial due diligence considers the market in which a business sits, for example involving conversations with customers, an assessment of competitors and a fuller analysis of the assumptions that lie behind the business plan. All of this is intended to determine whether the business plan stands up to the realities of the market.
Tax When companies acquire a business, dispose off a non-core business or go into a merger, they need to manage the tax risk by means of a tax due diligence. We provide you with corporate tax, social security and direct and indirect taxes due diligence, while focusing on risks (including quantifications) as well as opportunities
Legal In an M&A process, any responsible management will require a comprehensive assessment of the possible legal risks related to the corporate status, assets, contracts, securities, intellectual property, etc. of the target company concerned. The negotiation of the transaction will in most cases require the intervention of a legal expert as numerous legal pitfalls need to be tackled as early as at the negotiation table. The drafting of the transaction contracts and related documents cannot be done without the special attention from a business angle.
We perform a full legal due diligence resulting in an assessment of the main risks and provide potential solutions that reduce the risk and provide assistance in drafting the letter of intent/confidentiality and exclusivity agreements/share purchase agreement (SPA ) representations and warranties, etc.
Operational Operational due diligence (ODD) is the process by which a potential purchaser reviews the operational aspects of a target company during mergers and acquisitions

Process :-

  1. Document Procurement & Analysis
  2. Understanding the business & Industry
  3. Knowing the peer
  4. Undergoing SWOT
  5. Draft Report along with Backup
  6. Finalization of report

FAQ :-

What is Due Diligence?

Due Diligence includes reasonable steps taken by a person to avoid committing a tort or an offence. It is an investigation or audit of potential investment to confirm all facts related to the project including all financial records and anything else deemed material.

Is the scope of Due Diligence limited to financial transactions?

The scope of Due Diligence is inexhaustible. It can expand to all walks to life. Due Diligence is not necessarily conducted by the buyer or investor; it may be conducted by the seller to ensure the authenticity of the buyer. It may be conducted by the top management or owners of the organization to ensure themselves of all the compliances and good corporate governance.

What are the benefits of Due Diligence?

Benefits of Due Diligence include:

  • It ensures that the company in consideration is well compliant and there are no possibilities of penalty payments to arise in future due to negligence in past.
  • It helps to uncover hidden drawbacks or traps associated with the business action under consideration.
  • This brings out all the minute details relating to the business which helps the investor to gain better leverage on the deal.
Information

While investing funds into a high value project, investors like to confirm all material facts relating to purchasing the investment and determine whether it fits his return requirements, risk tolerance, income needs and asset allocation goals. This helps him to determine where the business is heading, what market factors may affect the stock’s price and how volatile the stock is. The investor then has a better navigation on whether the investment is right for him, and how much and when to purchase it. This process of performing investigation is termed as Due Diligence

The scope of Due Diligence is boundless. It does not limit to buyers or investors; sellers may also perform due diligence on buyers.

Financial Under this, financial information is verified and business performance is assessed. Areas such as earnings, assets, liabilities, cash flow, debts and management are considered.
Commercial Commercial due diligence considers the market in which a business sits, for example involving conversations with customers, an assessment of competitors and a fuller analysis of the assumptions that lie behind the business plan. All of this is intended to determine whether the business plan stands up to the realities of the market.
Tax When companies acquire a business, dispose off a non-core business or go into a merger, they need to manage the tax risk by means of a tax due diligence. We provide you with corporate tax, social security and direct and indirect taxes due diligence, while focusing on risks (including quantifications) as well as opportunities
Legal In an M&A process, any responsible management will require a comprehensive assessment of the possible legal risks related to the corporate status, assets, contracts, securities, intellectual property, etc. of the target company concerned. The negotiation of the transaction will in most cases require the intervention of a legal expert as numerous legal pitfalls need to be tackled as early as at the negotiation table. The drafting of the transaction contracts and related documents cannot be done without the special attention from a business angle.
We perform a full legal due diligence resulting in an assessment of the main risks and provide potential solutions that reduce the risk and provide assistance in drafting the letter of intent/confidentiality and exclusivity agreements/share purchase agreement (SPA ) representations and warranties, etc.
Operational Operational due diligence (ODD) is the process by which a potential purchaser reviews the operational aspects of a target company during mergers and acquisitions
  1. Document Procurement & Analysis
  2. Understanding the business & Industry
  3. Knowing the peer
  4. Undergoing SWOT
  5. Draft Report along with Backup
  6. Finalization of report
What is Due Diligence?

Due Diligence includes reasonable steps taken by a person to avoid committing a tort or an offence. It is an investigation or audit of potential investment to confirm all facts related to the project including all financial records and anything else deemed material.

Is the scope of Due Diligence limited to financial transactions?

The scope of Due Diligence is inexhaustible. It can expand to all walks to life. Due Diligence is not necessarily conducted by the buyer or investor; it may be conducted by the seller to ensure the authenticity of the buyer. It may be conducted by the top management or owners of the organization to ensure themselves of all the compliances and good corporate governance.

What are the benefits of Due Diligence?

Benefits of Due Diligence include:

  • It ensures that the company in consideration is well compliant and there are no possibilities of penalty payments to arise in future due to negligence in past.
  • It helps to uncover hidden drawbacks or traps associated with the business action under consideration.
  • This brings out all the minute details relating to the business which helps the investor to gain better leverage on the deal.