The due diligence process is a common process in corporate finance. It is based on the idea of information asymmetry and risk aversion. The sellers have more insider information about their offer than the buyer.
When it comes to investing in start ups and small businesses, the investor firm will require a due diligence process before committing. Sometimes investors need to make a choice between several candidates before investing.
They probably will want a financial audit, and they will want to meet with the management team. Make sure that there is a budget for such requirements.
There may be other aspects of the business to be checked in this process.
Determining the right price or share of an investment before starting the negotiations or making an offer is essential. Both parties need to come to the table fully informed.
Buying a business
Complete information gathering is an absolute requirement. Financial, structural, operational issues may be hidden under 'numbers and words' and are obviously not always clearly expressed in the sales presentation. Who would start undermining their sales position by taking a negative stance in their business plan? The issues may be right under the surface or they may be hidden away.
Our due diligence process will uncover the detailed information that needs to be available before you can make an informed decision to acquire your target.
We'll set up a 'Virtual Data Room" to help you discover, understand and analyze the situation. Unnecessary surprises need to be dealt with in a timely manner.
Our methods are cost effective, efficient, and secure.
We can send a team of experts and join you at your locations of physical data room as well. Or we can send an expert to join your team or provide local experts.
Asking the right questions, combined with research and experience, are the best guarantee for safe transactions.
Selling a business
Again, eliminating surprises is the goal.
Having your business independently reviewed by us is your best protection against surprises and your best guarantee to get a 'fair price'.
As a third party reviewer we don't have any conflicts of interest. Of course, assuming and knowing that, we can only do 'due diligence' for only one party in a transaction.
Checking every aspect of your business, such as contracts, agreements, suppliers, accounts, accounting, and more, will prepare you for the 'due diligence' process of your buyer.
Especially if, you have never done this before, this will strengthen your negotiation position considerably. If for example, you want to sell your family business, a fair price is what you would like to get. Engaging our expertise will more than pay for this service. It can make a significant difference in the end result. It may also bring your offer back to realistic proportions that will decide upon success or failure of the transaction.
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