Due Deligence Related Services

Due Diligence is the intense examination of a target business for a merger or acquisition by a prospective buyer and it can be described as a fact-finding device to assist in determining whether to buy the business at all, how much to pay for the business and how to structure the acquisition.

The principal purpose of Due Diligence is to verify assertions made by the Seller and to identify caveats that may not have been disclosed to the Buyer. It is a reasonable investigation about the state of affairs of the business to be acquired, focusing on matters which may have an effect on the future of the business. In short, the Buyer determines through Due Diligence that the business he / she is buying contains all the assets and liabilities that have been paid for. Following fields are invariably is investigated in any comprehensive Due Diligence:

  • Compatibility audit
  • Financial audit
  • Macro-environmental audit
  • Legal - environmental audit
  • Marketing audit
  • Production audit
  • Management audit
  • Information systems audit
  • Reconciliation audit

More specifically, a due diligence audit is performed to help a buyer understand details of the development process, degree of regulatory compliance, etc. of a target company. Due diligence audits are often performed in conjunction with the legal staff of the acquiring company.

In the recent past the corporate houses are looking for professional firms to verify, assess, investigate the viability of operations of there branches / associates / franchise to make them independent profit center at minimum possible cost. PKP also undertakes such types of assignments.

 
     
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