Due Diligence
Private equity firms often operate in unfamiliar territories or with little knowledge of the background, reputation or ability to conduct business of their potential business partners. Many times, the track record and reputation can be overlooked while focusing only on the potential financial gains.
Effective risk assessment is becoming a key issue of concern. To mitigate such risks, firms are seeking professional services to ascertain the reliability of information provided by potential business partners and to find out other relevant details that may not have been disclosed.
Due diligence in Mergers & Acquisitions is a detailed investigation and verification of financial records, business opportunity or deal to verify that the information provided by the targeted Company is genuine.
This process is initiated to target any risk involved in the proposed transaction.
Importance of Due Diligence in M & A
- It becomes very critical for the investor/buyer to know about the financial affairs of the Company and the legal health of the target Company. Therefore, in Mergers & Acquisitions, due diligence plays a major role in determining any risk attached to the target Company.
- Based on Due Diligence Report, the investor/buyer can measure the effectiveness of Corporate Governance.
- Before signing a term sheet with a target Company in M & A proceedings Due Diligence report is important.
- During the process of Due Diligence, shortcomings in a target company are identified and solutions to it are also provided which helps in effective decision making.
Types of Due Diligence in Mergers & Acquisitions
1. Financial Due Diligence
2. Legal Due Diligence
3. Administrative Due Diligence
4. Asset Due Diligence
5. Human Resource Due Diligence
6. Environmental Due Diligence
7. Tax Due Diligence
8. Intellectual Property Due Diligence
9. Customer Due Diligence
10. Secretarial Due Diligence
11. Management Due Diligence
Our Strength
Global ARM Corporate Services’, Corporate Intelligence practice seeks to assist its clients in making informed decisions by identifying any hidden factors or red flags that may impact their businesses.
We also highlight issues of concern that may cause potential reputation or financial damage to a firm, its directors and shareholders.
We have a dedicated team for Corporate Intelligence. The team comprises of professionals from diverse backgrounds such as police, journalism, MBA’s, research analysts, skills which are appropriate for engagements of such nature.
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Global ARM Corporate Services
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