It is the investigation of all records of an organization available for sale, done by the professionals hired by purchasing organisation. It involves extensive checking of financial records of the organisation along with analysis of synergies which could be achieved once two entities start working together. It helps us in addressing key tax and regulatory matters which would arise in the fields of Income-tax, Indirect tax, Foreign Exchange, Company Law and Capital Markets.
1. Financial due diligence: It is one of the most important type of due diligence done for an entity which includes analysis of audited/ unaudited financial statements of the previous years, current year and future years. It includes analysis of the following areas:
2. Administrative due diligence: It is the analysis of infrastructure and other facilities provided by the Company which includes number of workstations, power back-ups, canteen facilities etc. This analysis is done to assess the financial burden which will be borne by the Company once merger/acquisition has taken place.
3. Asset Due diligence: It is done to verify the schedule of fixed assets of the Company. It is done through:
4. Human resource due diligence: It is verification of employee records of the Company. It includes:
5. Taxes due diligence: It includes review of all taxes applicable on the Company and status of all pending cases filed against the Company.
6. Legal due diligence: It includes examination review of the following:
Above mentioned list is not an exhaustive list and only key areas have been highlighted.
We at MSB, perform due diligence audit with great care and confidentiality so that all merger/ acquisition transactions are performed swiftly. We use different analytical tools which helps in understanding the exposure and benefits that will be derived from the transaction of purchase or acquisition.Hire Us For Better Services