Due Diligence

Advisory Service

Due Diligence

Plans

Due Diligence

About the Service

Due diligence refers to the process of investigating and assessing a person, business or details of an investment to assess suitability, risk, potential value and reward before formally entering into a business contract. In the Financial world due diligence requires an examination of financial records before entering into a proposed transaction with another party. It involves examining a company’s numbers, comparing the numbers overtime, and benchmarking them against competitors.

Due diligence process can be conducted by a neutral unbiased trusted third-party like a professional services firm. It enables all the stakeholders involved in the transaction to have the required information to assess the risk involved accurately. Depending on its purpose, due diligence takes different forms. A company that is considering an M&A will perform a financial analysis on a target company. The due diligence might also include an analysis of future growth. The acquirer is also likely to look at the current practices and policies of the target company and perform a shareholder value analysis.

Scope
  • Operational Due Diligence
  • Financial Due Diligence
  • Asset Due Diligence
  • Taxes Due Diligence
  • Legal Due Diligence
  • Other Statutory Due Diligence
  • HR Due Diligence
  • Management Due Diligence
  • Vendor Due Diligence
Applicability
  • Organisations planning to acquire their competitors
  • Organisations planning to merge with each other
  • Investors trying to know the potency of a particular organisation
  • Investors planning to acquire an ailing organisation which has bright potential
Frequently Asked Question

What is the objective of Due diligence?

Main objective of due diligence is to minimize, to the extent practicable, the possibility of there being unknown liabilities or risks. The exercise is multi-dimensional and involves investigation into the business, tax, financial, accounting, legal aspects etc.

Applicable for:-

  1. Organisations planning to acquire their competitors
  2. Organisations planning to merge with each other
  3. Investors trying to know the potency of a particular organisation
  4. Investors planning to acquire an ailing organisation which has bright potential

What is Commercial and Operational Due diligence?

Commercial and Operational due diligence is the review of the business model, its advantages flaws, Competition, markets and broad industry of the organisation.

What is Financial Due Diligence?

Due Diligence is conducted on all aspects relating to the financial position of the company. Whether all the taxes were paid on time. Whether are there any Contingency tax liabilities, whether the assets are really owned by the organisation, Whether the profits shown are correct, whether there are any material misstatements in the financial statements, whether there are adequate internal controls and policies to thwart frauds and risks etc.

What are the advantages of Due Diligence?

Due Diligence enables the management in understanding the Operational Nature, Potential Risks, and Potential Opportunity of the targeted company. Thereby enabling the management to take informed strategical decisions.