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Due Diligence Services
In simple words, Due diligence is a process of collecting and verifying the facts of a business, transaction or process
Collecting And Verifying The Facts of a Business
In simple terms, due diligence is a process of collecting and verifying the facts of a business, transaction, or process. If you are buying a business, reviewing your supplier, entering into a joint venture, or simply investing in a business as a shareholder or a partner, you need to verify the facts you are presented with.
If you are buying or investing in a business, you will be given accounts, a company brochure, and other documents suggesting that their business is very successful. How do you confirm the real facts? You need to make sure your investment is secure and likely to grow.
These are the scenarios where you should consider conducting a due diligence process:
Purchasing a new property
Purchasing equipment
Purchasing a business
Investing in a business
Integrating / Joint venture with another business
Joining a partnership
The Due diligence process when buying a business will examine following areas:
Accounts of the business
Business plan and future strategy
Potential for business growth
Contracts with customers
Contracts with suppliers
Warranties
Employee contracts
Legal compliances
Business Valuation
Return on investment
Pay-back period
Other relevant business facts e.g. future growth, innovation, market position etc.
Types of Due Diligence:
Financial
Legal
Business / Commercial
Operational
Environmental
Strategic
Generally, it involves researching various areas to evaluate and verify facts and assumption. Finally, it is presented as a report.
At Sterling Finance, we conduct the Due diligence for entrepreneurs to provide them with the independent evaluation in order to make informed decision about their investment.
