Due Diligence Process

What exactly is due diligence?

Due diligence is an investigative process that identifies, verifies, and confirms another party’s claims. It is also an effective method for identifying risks and highlighting critical issues, providing valuable insight to businesses before they sign a new contract, form a partnership, or make an investment.

Why is due diligence important for your company?

Due diligence assists businesses in identifying risk areas and key issues, but it can also reveal opportunities that aid in negotiations. Without due diligence, your company may encounter activities that disrupt its operations and harm its reputation in the future.

Why perform due diligence?

• Quantify the real risk of a financial transaction, particular if the transaction takes place in a jurisdiction unfamiliar to you
• Assist in accurate decision-making
• Identify red flag issues
• Provide leverage for business valuation and negotiation
• Verify that investment or acquisition criteria have been met
• Ensure the other party or company is trustworthy
• Meet legal compliance and/or get regulatory approvals