What is Due Diligence?
Due Diligence is a process that involves risk and compliance check, conducting an investigation, review, or audit to verify facts and information about a particular subject. A due diligence check involves careful investigation of the economic, legal, fiscal and financial circumstances of a business or individual.It is a final precaution measure one undertakes before entering into an agreement with another party.The company can conduct due diligence on various events. Like, when the seller wants to investigate the authenticity of the buyer. Entities preparing for mergers and acquisitions also perform this activity.
When Due Diligence is required?
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Merger And Acquisition:
Due diligence is done from the perspective of the seller, as well as the buyer. While the consumer looks into the financials, litigation, patents, and a whole range of relevant information, the seller concentrates on the experience of the buyer, the financial abilities to complete the transaction, and the ability to fulfil responsibilities taken.
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Partnership:
Due diligence is done for necessary alliances, necessary connections, business combinations, and such other alliances.
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Joint Enterprise And Collaborations:
When one company joins hands with another, the reliability of the company is a subject of concern. Assuming the other company's stand includes the adequacy of supplies at their end.
There Are Certain Transactions That Requires Proper Due Diligence-
- Strategic Alliance
- Business Coalitions
- Outsourcing Agreement
- Joint venture through technical or financial Collaboration
- Venture Capital investment
- Public Issue.
Objective of Due Diligence?
The objective of due diligence is to identify problems within the business, particularly those matters which may give rise to unexpected liabilities in the future. The main objectives of conducting Due Diligence are-
- Conduct SWOT analysis to identify strengths and highlight threats and weaknesses.
- To identify areas where representation and warranties are required.
- Improved bargaining position based on SWOT analysis.
- Bridge the gap between the existing and expected.
- Collect material information from the target company.
- To take a correct decision about an investment.
- To attain a desired comfort level in a transaction
There Are Certain Transactions That Requires Proper Due Diligence-
- Information Technology due diligence
- Intellectual Property due diligence
- Commercial due diligence
- Operational due diligence
- Financial due diligence
- Legal due diligence
- Tax due diligence
- HR due diligence
How can Aerosoft assist you in Due Diligence?
Being one of the top reputable due diligence companies in India, we are a team with comprehensive knowledge of local and global laws. In Aerosoft, services are provided by experienced specialists. We ensure a reliable and multifaceted approach to due diligence assessment in the company.
Aerosoft conduct due diligences with the sole objective to generate valuable due diligence reports and business analysis for our clients, that become an integral component of their decision-making and negotiation processes.
We understand that not all counterparties need the same level of due diligence. We work with multinationals across the nation on a risk-based due diligence framework, which makes the whole programme of due diligence effective as well as cost efficient:-
- Enhanced Checks
- Standard Checks
- Basic Checks
- Scale and knowledge.
- Sectoral Experience
- Multi-Lingual Research Capability
- On-ground information collection expertise.
