Financial Due Diligence – Cornerstone of Every Deal
GOAL - Analyze and validate financial, commercial, operational and strategic assumptions underpinning a Deal
Focuses on historical results to form a view of future and confirm there are no “black holes”;
Key outputs:
Direct and Indirect Tax Due Diligence
GOAL - Evaluate potential tax implication of the transaction and tax position of the target
Complex tax and regulatory regime in most Asian countries;
Different legal structures and industry segments have different tax risk profiles
Key outputs:
Market Due Diligence
GOAL - Assist in understanding the condition and prospects of the market a Company wishes to enter in
Typically involves a combination of desk research, interviews with target management team, key trading partners and industry experts;
Key outputs:
Operational Due Diligence
GOAL - Gaining a coherent overview of a Target’s operations
Covers full scope of business operations from supply chain and logistics to manufacturing and commercial activities;
Ensures that sufficient work is done on some of the operational assumptions that are key to the success of a deal;
Key outputs:
IT Due Diligence
GOAL - Evaluation of IT security & controls and business process issues
Particularly important for M&A in the IT services sector;
Key outputs:
HR Due Diligence
GOAL - Qualitative evaluation of existing staff including HR policies
Typically covers pension and employee liability valuation, payroll costs validation, employment termination costs, compensation and benefit alignment costs
Key outputs:
Operational Due Diligence
Operational Due Diligence aims at the assessment of the functional operation of the Target Company.
Strategic Due Diligence
Strategic Due Diligence tests the strategic rationale behind a proposed transaction and analyses whether the Deal is commercially viable, whether the targeted value would be realized.
Technical Due Diligence
Intellectual Property Due Diligence – Review & diligence of Intangible Assets like Patent, Copyright, Design, Trademark , Brands etc. getting greater importance. Technology Due Diligence – Technology Due Diligence considers aspects such as current level of technology, Company’s technology, further investment required etc.
HR Due Diligence
HR Due Diligence aims at People or related issues. Key managers and scarce talent leave unexpectedly.
Environmental Due Diligence
Environmental Due Diligence analyses environmental risks and liabilities associated with an organization
Information Security Due Diligence
It is often undertaken during the information procurement to ensure that risk are uncovered.
Due Diligence : learn from the past, but look towards the future