Due Diligence
Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.
It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for an acquisition. The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to deliberate on the decision at hand and all its costs, benefits, and risks.
The term “due diligence” means “required carefulness” or “reasonable care” in general usage, and has been used in the literal sense of “requisite effort”.
Business transactions & corporate finance
Due diligence takes different forms depending on its purpose:
The examination of a potential target for merger, acquisition, privatization, or similar corporate finance transaction normally by a buyer. (This can include self-due diligence or “reverse due diligence”, i.e. an assessment of a company, usually by a third party on behalf of the company, prior to taking the company to market.)
A reasonable investigation focusing on material future matters.
An examination being achieved by asking certain key questions, including, how do we buy, how do we structure an acquisition, and how much do we pay?
An investigation of current practices of process and policies.
An examination aiming to make an acquisition decision via the principles of valuation and shareholder value analysis.
The due diligence process (framework) can be divided into nine distinct areas:
- Compatibility audit.
- Financial audit.
- Macro-environment audit.
- Legal/environmental audit.
- Marketing audit.
- Production audit.
- Management audit.
- Information systems audit.
- Reconciliation audit.
It is essential that the concepts of valuations (shareholder value analysis) be considered in a due diligence process.
What can we offer
Our financial experts conduct tax due diligence projects in close cooperation with our clients to obtain a complete understanding of the client’s expectations and provide high-quality deliverables.
We focus on analyzing key metrics and provide solutions by focusing on the identification of the key profit drivers of the target company. By having a thorough understanding of key economic factors, products or suppliers, dependence on customers, competition, etc., we provide a valid and forward-looking recommendation for our clients.
We are specialized in financial audit services; we provide a real picture and support you make future decisions. We are professional & affiliated with experienced firms in the UAE. We have been providing consultancy for many companies in the field of manufacturing, trading & services industry for more than decade.
Audit and assurance service is one of the core services that every business needs to track their financial transactions. More than just the records inspection and approval process, Darwin Audit and Assurance Services in Dubai, UAE is focused on providing a transparent and systematic financial statement audits and other assurance services to give valuable insights into your business. Our professional auditors in Dubai create a precise, comprehensive, and balanced audit, ensuring compliance with the regulatory requirements. Availing proper audit services in Dubai helps you ensure that your business is compliant with the UAE laws, regulations and accounting standards.
Our financial due diligence service is designed to provide excellent view focusing on relevant aspects of the target business identified as priority by our clients. Our firm’s top professionals updated knowledge and experience in a diverse range of business sectors enables us to provide a reliable and through financial assessment for all types of the companies.