Financial due diligence is carried out to assist a prospective purchaser, investor or funder to make an informed judgment as to whether to proceed with a proposed transaction or not.
There are a number of purposes to the exercise:
- Identify potential deal breakers
- Challenge, question and test the information upon which a decision has been made
- Assist in the negotiation process via the disclosure of weaknesses or areas of risk
- Identify post-completion issues
- Review net assets
- Highlight areas where additional warranties are required
Due Diligence for businesses.
Seeking a professional assessment for financial due diligence is carried out by professionals and is done in the correct manner.