Due diligence ensures success of both – buyer and the seller in a business. The investigation reveals upsides and red flags in different areas including finance, operations, strategy buildings and much more. It critically analyzes potential acquisition to make it sure that it aligns financially, strategically and culturally with the buyer’s business objectives. Most companies have competent attorneys and CPAs to perform their legal and financial due diligence. This is the assessment of the current legal and financial status of the target business. Primarily, financial due diligence focuses on the past performance of the business and the legal due diligence highlights the current status of the business. During the legal assessment, the buyer’s attorney collects all the outstanding contracts, agreements, pending and potential litigations. In financial assessment, the income statement, cash flow statement and other financial reports are demanded to assess the past performance. If you’re looking for the most impressive financial due diligence service in Abu Dhabi, partner with MBK Auditing. We also perform operations due diligence that looks to the future prospects of the business.
Operation due diligence is the operational assessment of the target business. It covers areas like marketing, sales, IT services and the complete organizational structure. The study also covers all operations of the business and this gives the buyer an idea of the infrastructure abilities to support and grow the business in future. The goal of due diligence is to discover the hidden or concealed information about a business. The financial due diligence needs to be performed as some business owners deliberately hide some crucial information about the business, they’re trying to sell. And avoiding fraud is not the only reason to perform due diligence. Even if the buyer wants that the operation runs smoothly without any nasty surprises, the process is helpful. Due diligence is also an effective tool for the investors as it helps to discover vital information about the business. It supports investors in knowing that whether the business fits in their strategic plan or not. Overall, assessing risks and frauds is not the only reason of due diligence and it can also be used to assess and foresee the potential opportunities.
