When referring to Mergers and Acquistions (M&A), Due Diligence is the process of investigation,
performed by investors, into the details of a potential investment.
Business Diligence will verify the material facts relating to the financial performance, operations,
management and legal liability of the company or business to be acquired. It is an opportunity
to take a close look inside the investment.
A comprehensive Due Diligence process enables the prospective
buyer to validate their opinion of the business and determine
if it is a worthwhile investment. In any M&A the following business
components should ideally be investigated:
- Financial information
- Market analysis
- Product review
- Customer information
- Competition
- Marketing, sales and distribution
- Plant & equipment
- System & technology
- Research and development
- Contracts & suppliers
- Management and personnel
- Legal and other matters
Business Diligence has the expertise to research, analyse and
answer a number of key Due Diligence questions in a timely and cost effective manner such as:
- Are the financial statement accurate?
- Is the Inventory in "Good and Re-saleable" condition?
- What is the condition and value of the assets?
- How effective and committed are the employees?
- What is the overall picture of the industry and the competition?
- What has the company done to market itself?
- How strong is the sales team?
- Will the company's contracts continue under new ownership?
- What can be done to increase the Revenues and Profits?
- Does the business have a viable future?
The benefits of outsourcing your organisations Due Diligence to
Business Diligence include:
- Access to an objective and specialist set of skills.
- Less disruption to regular work flow therby keeping the vendor "on side".
- The ability to appease and demonstrate sesitivity toward the Seller's
concern about confidentiality.
- Our excellent relationship management skills will make the Due Diligence
appear less intrusive and therefore more effective.
Don't take any chances when purchasing a company or business.
Always conduct a rigorous Due Diligence to verify the facts.
Contact Business Diligence for a consultation today.
