Is your due diligence
Investigation a duplication?
Your due diligence investigation may be a costly
duplication.
Your due diligence checklist may be
the same, or similar to, the due diligence checklist
used in the business audit, the due diligence checklist
used in the business valuation, the due diligence
checklist used by a venture capital firm or other
business investor or lender, the due diligence checklist
used by the underwriting firm and the securities
commission (for a public offering), or the due diligence
checklist used by a securities exchange (in the case of
publicly listed companies).
Has the due diligence
investigation already been done?
Is a due diligence
investigation the correct investigation approach for a business acquisition or merger.
Due diligence protects from fraud,
but may not be adequate protection for a business
acquisition or merger.
If you’re acquiring or merging
with a business with the intent of carrying on that
business, you’re probably paying more than the
disposal value protected by the due diligence
investigation.
Operational due diligence, in the
form of business analysis or business review, is
required to investigate whether the business can
continue maintaining the stream of income that the
business acquisition or merger price was based on. Operational
and financial due diligence must be done in the form of
a business analysis and business
process questions to determine whether
there are hidden financial or operational problems or opportunities.
We suggest purchasing the
following operational due diligence software and
products to replace or supplement your due diligence investigation:
In a merger or acquisition, is
there a corporate cultural match? Is there a business
process match? What other problems or opportunities are
there that may affect future profits? Answer these
and other questions, and/or report, through our business
process feedback questions.
Enhance your due diligence
investigation using our financial
statement ratio analysis software.
Enhance your due diligence
investigative audit by identifying recurring business
financial problems with our business
financial troubleshooter process. This process
includes financial statement ratio analysis software and
report, a business question checklist, and a solution
manual.
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