Due diligence

A solid foundation

Due diligence is the process through which a potential acquirer evaluates a target company or its assets for acquisition.

We, at Saif Chartered Accountants, assist in examining various relevant areas of the target company which includes financial, legal, labor, IT, environment and market situations. The report is intended for use by the prospective buyer for merger, acquisition, privatisation or similar corporate finance transaction.

Other areas include intellectual property, real and personal property, insurance and liability coverage, debt instrument review, employee benefits, labour matters and international contracts and transactions.

The importance of due diligence when buying a business

The business buying process has lots of twists and turns, but no part of the process is more important than due diligence.

Due diligence is the process of evaluating a business situation from all aspects before making a decision. Due diligence is often performed when buying a business, but there are many other situations in which due diligence might be performed. For example, due diligence is big factor in private equity funding through venture capitalists. Also, due diligence is part of the purchase of real estate, particularly in checking on the legal history of the property.