The Importance of Due Diligence Investigations
A due diligence investigation can ultimately define the success or failure of a merger or acquisition. It is a valuable and key risk management tool to allow buyers to make informed decisions and avoid any nasty surprises at the end of the deal.
The longer the process runs, the higher the risk gets of the deal going cold and potentially unravelling. The past decade has seen an acceleration in due diligence, as more organisations understand the dangers of not being fully informed. Conducting due diligence means businesses can mitigate the risks and ensure the deal runs smoothly.
Having a thorough understanding of all the company’s financials, including, audited and unaudited financial statements, comparable statements and the company’s projections are just some of the many factors that need to be considered.
Legal Issues and Compliance
Information presented has the potential to expose individual directors to criminal sanctions if inaccurate. Identifying any legal risks that may affect rights or obligations of the target, such as ownership of property, equipment or vehicles, intellectual property etc, must be factored in as part of the due diligence investigation.
An an established investigation agency, we have access to resources that allow us to procure information legally and ethically. We use a range of technical and traditional surveillance techniques when conducting a due diligence investigation. These include many processes such as background checks, risk management, looking at many aspects of the organisations operations i.e. company history, financial information, security, management practices, tax and marketing audits, employees and benefits, intellectual property, and liabilities etc.
With over 24 years experience in due diligence investigations, we are experts at pursuing checks and helping businesses make well informed choices. If you’d like us to help you with your due diligence investigation, please get in touch with us today for a no obligation call.