For a transaction to be successful, it is imperative that it goes through a comprehensive Due Diligence process. Due diligence requires investigation, audit, and review of financial records. This is necessary to confirm the facts of a matter under consideration. The value of the due diligence or probability of major issues or potential issues is thus identified. Due diligence cannot be prepared using available public information. The scope of due diligence depends on the size and scale of a transaction and the risks that surround it.
The need for due diligence arises when:
- A business owner needs to expand their company’s current portfolio of products and services through the acquisition of new ones.
- A business owner wants to buy a company to gain access to its existing products in new markets, or to increase their customer base.
- A business owner wants to expand their company’s market by purchasing a company providing similar products or services in another country.
Our due diligence service can benefit a prospective buyer of a business. At MARC, we join forces with you to conduct a thorough study of the target company.
MARC has vast experience in conducting due diligence on entities operating in various sectors. We deploy our experienced professionals to study the costs, benefits, structures, assets, and liabilities.
In our due diligence process, we:
- Review and audit financial statements.
- Prepare projections for future performance.
- Analyze the consumer market.
- Seek to eliminate operating redundancies.
- Review potential or ongoing litigation.
- Review antitrust considerations.
- Evaluating subcontractor and other third-party relationships.
- Identify and quantify:
- Hidden outflows.
- Outflows committed over a long period that may affect the future profitability or operations of the business.
- Industry-specific risks and opportunities.
- Tax exposures.
- Those Liabilities that can be deal-breakers.
Assisting with conducting a thorough due diligence on a company looking for an M&A in the form of fund raise, merger etc over the next few years. In short preparing a company for an investment. This is called ‘Sell side Due Diligence’ or ‘Agreed Upon Procedures’
We conduct due diligence with the aim to deliver valuable insights and business analysis for our clients. These insights become an integral component in the decision making and negotiation process.