Due Diligence Report
Due diligence is an investigative process for providing the desired comfort level about the potential investment and to minimize the risks such as hidden uncovered liabilities, poor growth prospects, price claimed for proposed investment being on higher side etc., In general due diligence process is transaction based.
The objective of due diligence includes —
- Collect material of information from the target company.
- Conduct a SWOT analysis to identify the strength and to uncover threats and weaknesses.
- For improving the bargaining position depending on SWOT analysis.
- To take an informed decision about an investment.
- Identification of areas where representations and warranties are required.
- To provide a desired comfort level in a transaction.
- To ensure complete and accurate disclosure.
- Bridge the gap between the existing and expected.
- To take smooth/accurate action/decision.
- To enhance the confidence of stake holder
The most important types of Due Diligence are:
- Business Due Diligence
- Operational due diligence
- Strategic due diligence
- Technical due diligence
- Environmental due diligence
- Human Resource Due diligence
- Information Security due diligence
- Ethical Due Diligence
- Legal Due Diligence (including secretarial due diligence)
- Financial Due Diligence (including tax due diligence).