Due Diligence Report
Due diligence helps buyers, investors, and management teams identify legal, tax, financial, and compliance risks before major decisions. We support focused reviews that turn raw records into clear findings and actionable recommendations.
Scope & Objectives of Due Diligence
It is very much necessary that the scope of DDR is determined in consultation with the client. It is not confined to financial due diligence but extends to operational due diligence, market due diligence, technical due diligence, legal due diligence, systems due diligence, etc. all of which form an integral part of the overall due diligence exercise.
Generally, a comprehensive DDR is undertaken with the following objectives:
- To assess the commercial and technical feasibility, resource availability of the business and synergy between the organization (acquirer & target)
- To ensure the compliance of necessary statutes and ascertain the liability in the event of non-compliance
- To finalize the value of the acquisition or a financial investment
- Look at tax position / structure and its implications
- Look for overvalued assets or under-recorded liabilities, hidden assets or liabilities
- Assess the quality of management and identifying key employees of the Target Company
- To prepare a post-acquisition plan
- Look into any other significant matters of interest to the acquirer
- Provide value added information about the target’s business
Types of Due Diligence
There are several types of DDR, which are as listed below:
- Business / Market Due Diligence
- Technical Due Diligence
- Human Resource Due Diligence
- Legal Due Diligence
- Environment Due Diligence
- System Due Diligence
- Tax Due Diligence
- Financial & Accounting Due Diligence