Due diligence benefits investors considering the acquisition of a shareholding in a company. In acquisition due diligence we conduct a detailed investigation of information at the target company to identify issues which can affect the deal.
Aim of due diligence is to identify risks and to place the acquirer in a stronger position during negotiations over price and SPA terms.
Usually due diligence includes following areas:
- Understanding the business of the target;
- Understanding the business environment of the target;
- Performing a high level financial review;
- Reviewing future projections prepared by the target;
- Review of taxation and legal issues.