1. “The examination of a potential target for merger, acquisition, privatisation or similar corporate finance transaction normally by a buyer
A number of concepts involving either an investigation of a business or person prior to signing a contract, 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 acquisition.
- 2. A reasonable investigation focusing on material future matters.
- 3. An examination being achieved by asking certain key questions, including, do we buy, how do we structure the acquisition and how much do we pay?
- 4. 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.
Compatibility audit.
Financial audit.
Macro-environment audit.
Legal/environmental audit.
Marketing audit.
Production audit.
Management audit.
Information systems audit.
Reconciliation audit.
The Liar Catcher team can and will perform your investigative needs relative to any area you see fit. Don’t let the ” smoke” cover the facts that are there if properly investigated.
