Our team members recruited from renowned audit firms and investment banks are particularly familiar with due diligence on financial aspect. Due diligence is one of the most essential information-gathering exercises an investor would carry out to appraise a target company or its assets in mergers and acquisitions. While due diligence becomes more important in business decision making, there is an increasing demand for this process initiated by either potential acquirers or businesses offered for sale.
The process serves the following functions:
Confirm that the business is what it supposes to be;
Verify that the transaction complies with investment or acquisition requirements;
Obtain information that will be useful for valuation and price negotiation;
Identify potential defects and avoid any bad business transaction; and
Assess the credibility and financial positions of business partners or vendors of the subject company.
As buyers and their advisors are more cautious than before, they pay more attention to the sustainability of profitable business models, financial healthiness and contingent liabilities of target companies. Thoroughly planned and well-executed due diligence procedures can reduce disruption and ensure successful transaction processes. Vendors are also benefited from carrying out due diligence for a shortened sale process and more control over the transaction.