Steps to conduct Due Diligence on your target company!
The primary goal of due diligence is to review and confirm the target company’s financial records before engaging in any transactions with counterparties. The first and foremost step of due diligence process is to unearth as much company data as possible. The idea is to review the financial aspects, sales figures and assets of the target company. At the same time, it is also important to look into the company and potential liabilities from customer data and records.
We help you centralise all the company information by creating a virtual space online where all the information can be gathered, organised and shared. Our online form is well indexed with all the probable general information required for due diligence. The easily accessible online form helps speed up the process and helps maintain transparency in the communication.
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Steps for complete due diligence on a target company:
- ·Reviewing corporate financial information – It reviews the company’s annual financial statements, cash flows, outlining and uses of cash reserves, expenses, public filings, disclosures, etc.
- ·Evaluating the target company’s structure and practices – Check the company’s legal documentation, permits, licenses, articles of incorporation, corporate by-laws, etc.
- ·Reviewing assets of the company – The fixed assets need to be verified including any kind of lease agreements, mortgages, deeds, permits, policies, office equipment, materials, etc.
- ·Reviewing key competitors and the brand’s reputation – Check the target company’s positioning in the market from the customer’s perspective. The company brand name is the most significant intangible asset hence it is worth exploring the brand nuances.
- ·Investigate any kind of litigation – The outstanding liabilities of the target company is a burden and that’s the last thing you want to inherit. Due diligence helps to evaluate the chances of a lawsuit that could surface after the acquisition.
Due Diligence is a far wider process than meets the eye, check out this blog to understand about due diligence in detail and why is it so important.
Our systematic and well-organised due diligence online form ensures a high level of transparency and effective data collection. It can be customised as per the company requirements by gathering and analysing thousands of data points.