Whether Buying or Selling, Due Diligence is the key way businesses investigate a target company to determine whether to acquire it or not. The Business Valuation also needs to be right - see our page on Business Valuation methods. Here are the different types of Due Diligence:
Commercial due diligence - typically review of the business to identify the key profit drivers and the risks to them. This might be through a detailed report or detailed financial modelling of the target.
Financial - more traditional review of both Balance Sheet accuracy, together with review of forward forecasts.
Legal - mainly done by Corporate lawyers this involves the review of contracts, terms & conditions and other key commercial arrangements.
Property - Review of property including condition, title and planning consents.
Environmental - review of environmental aspects for example possible pollution. Often considered with manufacturing or processing businesses
Pension - If the target company has a final salary pension scheme this will need specific Pension Scheme due diligence review for adequacy of funding.
If you are thinking about:
Selling your Business: get ahead of the game by using our Strategic Exit Review
Buying a Business: do better deals by using our Commercial Due Diligence
vfdnet part time Finance Directors have strong experience of preparing companies for Sale and acquisitions - see our transactions. Contact us to discuss your needs.
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