How can you avoid getting things wrong when acquiring another company? Do the actual figures tally with what you have been told? A due diligence investigation ensures that decisions within an acquisition process are taken on a sound basis and any risks are reliably identified. In other words, it is a careful analysis to determine exactly what you are acquiring.
Due diligence is a process that involves carefully analyzing, investigating and evaluating information and data. It goes beyond simply auditing a company’s books. A full due diligence investigation can be broken down into various elements, including financial, fiscal, IT, legal and personnel due diligence. Especially in international mergers and acquisitions, cultural aspects are part of the due diligence.
A due diligence investigation sheds light on the entire organization. As part of this process we will consider financial, operational, strategic, legal and commercial aspects, but also growth targets, ambitions, opportunities and risks. We will present you with a report and will discuss it with you. Does the outcome differ from the picture you had in mind? If so, the investigation may give you cause to make changes to the conditions or price, for example.