In order to achieve synergies, firms involved into merger and acquisitions of their business counterpart. Making an investment decision would again concerned the business to mitigate risk keeping in mind their values and objectives to be achieved.
Business firms are taking a due care before entering into investment decisions or mergers to ensure that the target firm’s valuations are fair. The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to deliberate in a reflexive manner on the decision at hand and all its costs, benefits, and risks.
Our due diligence service focuses on the most critical elements of transactions, including:
- Identifying and quantifying industry and deal-specific risks and opportunities.
- Evaluating quality and reasonableness of historical and projected earnings and cash flows assessing quality of assets.
- Identifying hidden costs, commitments and contingencies.
- Identifying and quantifying tax exposures.
- Identifying and quantifying liabilities that can be deal breakers; and
- Highlighting issues likely to affect the purchase price or contract conditions.