Due diligence refers to the process of research and analysis that is done before an acquisition, investment, business partnership or bank loan in order to determine the value of the subject of the due diligence or whether there are any major issues or potential issues. The prospective acquirer / investor should obtain all the necessary information within the predetermined time and make sure that he makes a good deal and not a costly mistake.
How we can help:
- 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.
At Power2Startup we do the following as a part of our due diligence process:
- A thorough inspection of the company profile
- A physical visit paid to the company
- Examination of the employees
- Taking market feedback
- Evaluation of the assets of the company
- A verification of the infrastructure
- Scrutiny of the compliance and affiliations
- An in-depth look at the accounting and the taxations
- Searches in public databases
- Searches in the media
- A look at consumer complaints to judge their veracity
Why is the due diligence important?
A due diligence helps to make sure that you don’t overlook anything when acquiring a business. Power2Startup recommends using the checklist to know if there are obligations, problematic contracts, liabilities and litigation risks you are assuming when taking control of the company.
What should I do after compilation of the due diligence checklist?
Once you have the due diligence of the checklist prepared by Power2Startupyou should analyze it to see the potential for profit margins, operational efficiency upgrades, market competition and market review, for monitoring trends in the market, and also to examine the impact of new technology.
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