Due Diligence Review

Due Diligence Review is a process, whereby an individual or an organization, seeks sufficient information about a business entity to reach an informed judgment as to its value for a specific purpose. Offers to purchase a business are usually dependent on the results of due diligence analysis. This includes reviewing all financial and legal records including anything else deemed material to the sale. Sellers could also perform a due diligence analysis on the buyer which would help the seller to be aware of the buyer’s ability to purchase and of factors that could affect the purchased entity or the seller after the sale has been completed. Due diligence is a way of preventing unnecessary harm to either party involved in a transaction. It is not confined to financial due diligence but extends to operational due diligence, market due diligence, technical due diligence, legal due diligence, systems due diligence, etc. all of which form an integral part of the overall due diligence exercise. We help companies in Due Diligence Review as below.

  • Financial Due Diligence It involves evaluating the proposed deal by analyzing the present and historical financial statements including important agreements reviewing the control environment and assessing the risk incidental to the business. It also focuses on reliability of financial statements and evaluating adherence in compliance with financial reporting standards applicable to the entity under review.
  • Legal Due Diligence In mergers and acquisitions, any responsible management will require a comprehensive assessment of the possible legal risks related to the corporate status, assets, contracts, securities, intellectual property, etc. of the target company concerned. The negotiation of the transaction will in most cases require the intervention of a legal expert as numerous legal pitfalls need to be tackled early at the negotiation stage. The drafting of the transaction contracts and related documents can be effective only after special attention from a business angle.
  • Tax Due Diligence In mergers and acquisitions both the parties need to manage the tax risk by means of a tax due diligence. We provide corporate tax, social security and direct and indirect taxes due diligence while focusing on risks as well as implications

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