Due Diligence

Due Diligence

Where we can  help:

Due diligence is an investigation designed to inform potential investors/ seller before finalizing important business decisions like mergers and acquisitions. It is a structured process wherein the confidential information is analyzed to evaluate the profitability of the deal.

There is no specific guidelines for undertaking due diligence and hence we carry out a tailor based approach broadly covering the following areas:

  • Financial due diligence
  • Commercial due diligence
  • Tax due diligence

Key benefits:

  • Understanding of the financial position, potential risks, liabilities as well as opportunity.
  • Identifying the potential synergies associated with the proposed transaction.
  • Evasion of losses in future.

Overview of our services:

Financial due diligence: Review of financial data, including historical accounts, performance forecasts, outstanding debts, vendor analysis and any funding requirements. Further, ensuring that the data is accurate.

Commercial due diligence: Undertaking competitor analysis, EBIT projections, examining the target company’s reputation, testing deal synergies and market conditions to ensure the viability of the target company.

Tax due diligence: Understanding the tax structure, verifying historical compliances and investigating tax obligation. Identifying and quantifying tax exposures arising due to potential transaction.

Risk Management: Analyzing all the above factors, identifying the current and forecasting the potential risks that may be associated with the transaction. Providing strategies to mitigate the risks where possible.

Reporting: Providing a comprehensive due diligence report covering the purpose, financial data analysis, information about business viability, market analysis and other facts arising out of the investigation.