Due Diligence

Package Inclusion :

  • People Due Diligence
  • Financial Due Diligence
  • Regulatory Due Diligence
  • Environmental Due Diligence
  • Due Diligence Advisory

Due Diligence

What is Due Diligence?

Due diligence is one of the best ways that enables businesses to take well-informed decisions of pertaining to a situation. Due diligence is generally performed by a company before any business sale, private equity investment, bank loan funding, etc., The conditions of the particular situation are investigated utilizing a standard to create a clear picture of the situation thereby enabling better and effective decision making.

What are the main objectives of Due Diligence?

1. The Due Diligence process is a manual tool to check that the business you want to purchase is –

2. It is required to be examined so that the buyer or acquirer can make an effective decision

3. It ensures a health check for the Company by exercising proper planning and execution.

4. Minimize the chances of acquiring unknown liabilities or risks

5. Identifying existing issues or problems of the business that may grow into higher proportions giving rise to unexpected liabilities in the future.

6. Determining the value of the business and accordingly negotiate the correct price

7. It is also undertaken as a sign of good corporate governance.

In which cases Due Diligence is required?

How can Kbng help in the Due Diligence Process?

Professional due diligence companies are hired by the buying company or the investor after the Letter of Intent is signed but before a formal purchase agreement is entered by the involved parties. The documents are asked on the basis of the checklist and then a Summary report is generated.

Kbng shall assist in the same, enabling a well-defined due diligence structure for the organization. Thus, Kbng provides with a complete business due diligence and assessment services along with a comprehensive report. We have a very smooth workflow. You can contact us in the following manner;

What are the steps involved in a Due Diligence Process?

Due diligence process typically consists reviewing the mandatory due diligence checklist points of the following key areas:-

What is Due Diligence Checklist?

The checklist consists of Financial due diligence checklist, legal due diligence checklist, operational checklist, HR checklist etc. The various financial, legal and other types of documents that are reviewed and evaluated by the due diligence advisory include -

The above M&A due diligence checklist actually needs to start with the checking of records at the online site of the Ministry of Corporate Affairs. In fact, the ROC charges a nominal fee for making an inspection of available information related to another organization.

It is also equally necessary to check for tax-related documents, other than checking the financial statements, cash flow information, and valuation of assets and liabilities of the company. Taxation related documents that form part of the due diligence checklist are – the ESI/PF returns filed, ESI/PF payments done, ESI/PF payment calculation, payment of service tax/VAT/GST, TDS returns, TDS payments and TDS calculations.

Though the M&A due diligence checklist involves time and money it is the ideal way to save a business from impending financial disaster and irrevocable embarrassment to the reputation of the acquiring company. In today’s modern business world, it is considered to be a mandatory step to meet legal and regulatory requirements and also to encourage corporate integrity and confidence of customers.

How  Kbng will help you

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