Due Diligence
We Verify India’s Turnaround Solutions for maximum leverageWe Verify Due Diligence provides 360-degree solutions to organisations/conglomerates, assisting them with extra leverage points in their business negotiations (acquisitions and/or mergers) and safeguarding their constructive interests from potential damages in the probable deals.
Our clients value and recognise our efforts and over the years, We Verify has become a preferred choice for corporates to work with. We always strive to provide more data and statistics based on facts to assist you to make informed choices.
Objectives
The aim of due diligence is to assess:
» Any hidden liability or risk involved
» Legal, financial and business factors
» The value of a business in terms of assets, securities, etc
» The eligibility of a business or a target company before a merger or acquisition.
The process involves an extremely detailed examination and is customised to the needs of each client. Approach
Due diligence involves a multidimensional approach, which varies depending on the transaction involved. It usually involves investigation of:
» A specified market or business process
» Ownership and credit worthiness
» Financial structure and risk assessment
» Legal practice and procedures.
Scope
1. Organisational structure» Ownership
» Shareholders, directors, etc
» Organisation status
» Contracts/permits
» Articles of Association
2. Financial structure
» Balance and audit sheets
» Tax returns
» Past financial performance
3. Business structure
» Product and accreditation
» Market position analysis
» Company profitability assessment
» Existing customer group
» Competitor analysis
» Market analysis
4. Legal structure
» Legal procedures/practice
» Legal compliance
» Government permits
» Liabilities and warranties
» Litigation
5. Valuation of assets
» Physical and intellectual assets
» Ownership rights
» Lease/license
» Validity of licence/lease
Process
A due diligence process is undertaken after both parties have agreed to pursue a transaction. Our team will prepare a questionnaire covering all the required information and will examine relevant documents in detail. We will also conduct multiple onsite visits, and internal and external interviews with customers, vendors, suppliers and market experts. After this thorough and painstaking process, we will submit our final report.
Why due diligence is important
The aim of due diligence is to assess the risks involved in a transaction. An effective process does not eliminate the risks but will provide alternative solutions, including price negotiation and security provisions to reduce the chance of business loss. This helps both parties take a rational decision before finalising the contract or sales deed.