Our methodology is leveraged by our risk management approach embedded in the traditional Due Diligence process.
We have specialists from different operational areas to provide careful and thorough due diligence.
Apart from the traditional areas checked during a due diligence process, we have risk management specialists who are able to check for operational risks or other emergent risks linked to the business. Sometimes, those risks are relegated to a second plan and can erode the expected return over investment desired.
Regulation and different jurisdictional laws require that an entrepreneur act with a certain standard of care, exercising prudence that a reasonable business or person is expected to take before entering into an agreement or contract with another party. Whether a legal obligation or a voluntary investigation, a careful due diligence process is a must as any potential acquirer evaluates a target company or its assets for an acquisition.
An investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to make an informed decision regarding costs, benefits, and risks.
Due diligence takes different forms, depending on the purpose:
- The examination of a potential target for merger, acquisition, privatization, or similar corporate finance transaction normally by a buyer. (This can include self due diligence or “reverse due diligence”, i.e. an assessment of a company, usually by a third party on behalf of the company, prior to taking the company to market).
- A reasonable investigation focusing on material future matters.
- An examination being achieved by asking certain key questions, including, how do we buy, how do we structure an acquisition, and how much do we pay?
- An investigation of current practices of process and policies.
- An examination aiming to make an acquisition decision via the principles of valuation and shareholder value analysis.
- The due diligence process can be divided into nine distinct areas:
+ Compatibility audit.
+ Financial audit.
+ Macro-environment audit.
+ Legal/environmental audit.
+ Marketing audit.
+ Production audit.
+ Management audit.
+ Information systems audit.
+ Reconciliation audit.