Due Diligence

Due Diligence

  

Services Due Diligence

 

Due Diligence or Acquisition Audit

Urban plannning due diligence, technical and legal analysis. is a process of investigation and auditing (including personal information) to confirm the data available to potential buyers or investors. This process has clear variations depending on the nature and purpose of the underlying business, but basically focuses on financial, accounting, tax, social, labor, environmental, real estate, property and even business risk issues.

It is a work that must identify the veracity of the accounting assets and liabilities, as well as the contingencies that may affect the business, allowing to guarantee greater security for the parties, whether buyers, shareholders or investors. Technical knowledge, experience and ethical performance with impartiality, confidentiality are essential for a successful job.

The process of realization and execution

The work of due diligence may be requested by the investor or the seller. If prompted by the seller, requires the preparation of a package of documents and information to be provided to the buyer / investor. It begins by investigating information or verifications accessible and publicly.
If required by seller, may also take the form of reverse due dilenge,focusing on the buyer, in aspects such as the financial situation, to carry out the acquisition or to establish the reputation and capacity for the business. It is extremely important to clearly define the objectives, methodology, principles and depth of work. On the other hand, connect the due diligence to the form and value of the business, you can avoid misunderstandings about values ​​and key aspects related to the transaction or merger.

The result ofdue diligence is usually a report on the general situation of the "object" in transaction, which confirms the values ​​and identifies the inherent contingencies. It focuses mainly on areas such as financial and economic information, legal aspects, marketing, production, management and information systems. However, it can also focus on aspects such as reputation, capacity and viability for the pursuit of the business.

This report will be one of the relevant elements in the preparation of the definitive instruments for the execution of the transaction, as well as assist in the determination of the negotiated values.