Due Diligence Mergers and Acquisitions

Due Diligence Process

Due diligence is an important aspect in any M&A process. During a due diligence an investigation is being done into the company that will be acquired. It is wise to use a due diligence checklist during the process. Depending on the size of the company the due diligence can consist of various parts like operational, financial, legal, tax etc.

Important in a due diligence process is to ensure it is being executed by industry specialists who understand the business and know where to look for to check if the company is of good quality and there are no hidden issues. Corporate Finance in Europe works with people with a background in various industries like IT, Chemical and Transportation.

Financial Due Diligence

CFIE’s people have a financial background and understand the financials of companies in the industry it operates in. Checks will be performed in various areas to see how financial ratio’s compare to industry averages and what this tells about the companies operations and position in the market.

Operational Due Diligence

It is very important to understand the operations of the target company to see how these fit with the buyer. An operational due diligence needs to be executed by people who understand the industry and have a background in it.

Legal Due Diligence

A Legal and tax due diligence needs to be part of any DD process. It is advisable to have tax and legal experts check the company to be acquired to ensure there will be no negative surprises in the future regarding taxes or legal affairs.

Corporate Finance in Europe has due diligence consultants or contact with due diligence firms that possess the required skills to perform these processes for you. Please contact us to know more about how we can help you with the due diligence services that you require.