Providing thorough reviews that facilitate the buying decision.
The process of due diligence can take a number of forms, and is often described as the investigation or review of the business, prior to the completion of a transaction.
Invariably, due diligence is associated with the work undertaken prior to the acquisition of the business by a third party, with a view to reporting on the target company. The process can be divided between the number of individuals or organisations, so as to ensure that not only the financial aspects of the transaction are considered, but also the commercial and legal aspects as well.
As part of the due diligence process, a buyer will usually instruct accountants to prepare a report on the financial aspects of the target business.
This financial due diligence is not the equivalent of an audit and accountants’ reports will usually make this clear. However, financial due diligence should focus on those areas of the target’s financial affairs that are material to the buyer’s decision so that the buyer can assess the financial risks and opportunities of the deal and whether, given these risks and opportunities, the target business will fit well into the buyer’s strategy.
We have undertaken due diligence in the following key areas:
- On behalf of buyers, in respect of a target company or business
- On behalf of sellers, in undertaking a review of the company, and its procedures, prior to sale
- On behalf of funders, who are funding a transaction, or providing loan capital to a business
We also undertake this work on behalf of clients, who are not already clients of the firm, and require an independent report. All work is monitored by experienced partners, who have been involved in these processes before.
Please contact us for a free initial discussion to see how we can help you!