If you’re considering acquiring another company, it is important to know the company’s true value and to fully understand any associated risks. Such risks will remain with the company and cannot easily be passed back to the sellers.
Potential risks could lie in the company’s accounts, finances, taxation and commercial viability, as well as HR (human resources).
To ensure you’re comfortable with the risks you’ll be assuming, our advisers will examine the target company in accordance with a scope we’ve agreed with you. We’ll discuss the outcome of the examination with you, giving you the facts you need to make an informed decision.
If our advisers find that the risks are too high, we’ll tell you. The final due diligence report will provide you with the information you need to start planning the integration of the target company with your current business.
Our due diligence (DD) services cover:
- Commercial DD: The trading risks and exposures to your target’s key clients or suppliers
- Financial DD: The risk that the accounts used for the final company valuation are incorrect and the risk of unrecorded liabilities crystallising
- Tax DD: The risk of unrealised or unknown tax liabilities and the tax-efficient structuring of the transaction
- HR DD: Employee-related risks around potential claims, culture clashes, morale problems or loss of people
To discuss due diligence with our corporate finance advisers, please get in touch using our enquiry form below.