Buying and selling companies, assets or even making an investment in a major project can be risky. Objective due diligence can help mitigate these risks as well as highlight opportunities to create value and make a transaction successful.
The purpose of our due diligence work is to enable the prospective purchaser or investor to make an informed decision whether to proceed with the transaction or not. Furthermore, the due diligence process will also help structure the deal and prepare you for negotiations.
The objectives of our financial due diligences are set out below:
- To confirm information provided by the seller
- To assist negotiation with information discovered
- To inform the prospective purchaser or investor
- To assess the existence and value of available security
- To confirm the net assets, both title and value
- To support the price being paid /invested
- To help set the warranties and indemnities
Financial due diligence mostly sought for the following transactions:
- Disinvestments
- Strategic investments or a private equity investment
- Acquisition of an undertaking / business
- Acquisition of shareholding interest
- Inbound and overseas investments
- Listing of securities in Indian and overseas markets
1
Quick Appraisal
2
Terms of Reference
3
Information Checklist
4
Field Work
5
Identifying Issues
6
Replies from Management
7
Preparation of draft Report
8
Discussion of Draft Report
‘’The steps involve an interface with management and other advisors to ensure that all aspects of the project are duly considered and reviewed. This is a pre-requisite for a well informed decision.’’
