Due diligence is an investigation or audit of an impending investment in order to confirm that all the facts are in order. It includes an assessment of the legal, financial, and business risks that can be associated with the situation. This includes reviewing all of the financial records, plus all of the other material that is involved in the process. Our team at The Accountancy Solutions approach every due diligence case investigation with vigour and professionalism in order to ensure that it is carried out correctly and efficiently.

Our team ensures that we provide care before entering into an agreement with another financial party or financial transaction. A member or members of our team will perform a due diligence by studying the reports and relevant information involved. It is highly recommended for parties to perform a due diligence on each other, regardless of the situation. A due diligence investigation is important for many situations, whether you are buying, merging, or selling. The theory behind the due diligence process is that performing this investigation contributes considerably to an informed decision making.

Due diligence contributes by helping to enhance the amount of quality information that is available for decision makers to make their decisions on and by ensuring that the information is used properly. It also helps the buyer understand such things as what they are buying into, the obligations associated, the nature of the company’s contingent liabilities, the contracts involved, intellectual property issues, litigation risks, and much more. Acquisitions typically involve a substantial amount of due diligence by the buyer. We use due diligence at The Accountancy Solutions to deliberate in an automatic manner on the decision and all of its benefits, risks, and costs associated with acquisitions.

When an acquisition is won by an acquirer, the level of due diligence undertaken is often in direct correlation to how successful the acquisition is. All due diligence work is completely tailored to the deal at hand. We work hard together with clients to provide due diligence in many areas. Some of the areas that we cover in due diligence include:

  • Financial and Corporate due diligence
    This focuses on the scope of finance and differs between businesses depending on the size of the industry. The scope would include an analysis of earnings and finance aspects of the acquisition.
  • Forecasts and forecast critiques due diligence
    This is to confirm that their forecast and pipeline information is relevant, even for the future.
  • Financial reviews & analysis due diligence
    Understanding the target’s financial statements of how they have performed during reporting periods, and it how it trending. Proper financial review due diligence will help the purchasers in many ways. This will help with the purchase price, target’s growth opportunities, strategies, issues, and avoid costly mistakes.
  • Tax analysis due diligence
    This can help a buyer make more informed purchasing decisions, get support for the negotiation price and documents, determining the structure of warranties and other agreement terms. Tax laws can be complex, so it can be difficult for a buyer to understand tax exposures and relevant tax laws. This will help to get rid of those difficulties.
Accountancy Advice for Due diligence of a business

A due diligence checklist is often of use for an acquisition analysis. This is usually a list of general items to investigate as part of an acquisition analysis that is tailored straight to the acquirer. Some questions involve asset acquisition and others industry-specific. A due diligence is important as it serves as a legal defence to third-party after a transaction is closed. It also helps to reduce any legal issues from occurring by informing a purchaser or investor to possible liabilities that could be mitigated in many ways before closing the transaction. At The Accountancy Solutions, we take the due diligence process seriously. We ensure that it is carried out effectively to help benefit our buyers and the company during the acquisition process.

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