DUE DILIGENCE AS A SERVICE
Contrary to what some people think, due diligence is not as simple as ticking-off boxes on a checklist or filling up a standard questionnaire.
Every business transaction involves a certain amount of due diligence before any of the parties sign and seal their terms of agreement. But being part of a standard routine does not make due diligence a perfunctory process that you merely have to get done and over with.
If you consider the critical impact that due diligence has on ascertaining the legal compliance, financial soundness, and commercial viability of your potential business investment, perhaps you can better appreciate why due diligence is a vital and necessary service – and why performing due diligence is best entrusted to a team of seasoned and highly competent professionals.
Whether you are a buyer or seller, the most basic purpose of due diligence is to protect you and your company from any fraud or misrepresentation before, during, and after the transaction.
For best results, conducting due diligence demands a high level of proficiency, discipline, prudence, and intuition – as well as the creativity to visualize what veiled issues to anticipate, the resourcefulness to do research and collect accurate information, and the ability to convert all the accumulated data into a coherent language of business.
With years of experience in facilitating commercial and financial transactions all over the world, Veritas Global understands that due diligence is a collaborative process that requires not only attention to details but also attentiveness to the specialized needs of every client.
Over the years, our team has developed a methodical yet flexible approach in performing due diligence that is aligned with your corporate objectives, sensitive to your business targets, and focused on helping you obtain the best value from any transaction.
Due diligence fuels empowered business decisions
In the realm of corporate law, due diligence may be defined as “the process of conducting an intensive investigation of a corporation as one of the first steps in a pending merger or acquisition.”
In business, there are two situations that would require the performance of due diligence — one is on the sale and purchase of products or services, and the other involves mergers, acquisitions, and partnerships among corporate entities.
From the perspective of mergers and acquisitions, due diligence entails a full understanding and disclosure of all legal and financial obligations of the target company, such as debts, pending and potential lawsuits, leases, warranties, long-term customer agreements, distribution agreements, intellectual property rights, environmental practices, employment contracts and compensation arrangements, among others.
This meticulous audit and investigation is done to thoroughly assess the current status of the target company, as well as the legal and financial implications they present should the client push through with the potential transaction.
Due diligence services are usually requested by buyers or investors in order to discover hidden information about the company they are eyeing to purchase or finance. As the Latin expression “caveat emptor” suggests, it is a generally accepted rule that the buyer must take all the necessary precautions and perform due diligence before signing off on a deal.
On the other hand, sellers are also encouraged to perform “reverse due diligence” to assess their company’s readiness to go up for sale, and to help them evaluate the background and capabilities of prospective buyers, partners, or investors.
No matter which side of the transaction you find yourself in, due diligence empowers corporate leaders to arrive at gainful, strategic, and informed decisions that would maximize value and minimize risks.
No shortcuts, no guesswork – just credible solutions
There are various types of due diligence, each with their particular focus of inquiry. The most commonly performed due diligence investigations usually cover the following areas of concern:
- Human Resources
- Intellectual Property
- Information Technology
- Customer or Client Relations
Performing due diligence is often a tedious, meticulous, time-consuming, and complex process that requires combing through volumes of data and information, as well as interviews and on-site inspections. While there is a sense of urgency to get the job done as soon as possible, there is no room for short-cuts or guesswork. A simple oversight can easily escalate into a complex and costly mistake.
In conducting due diligence, business leaders would benefit immensely from expert assistance and advise from experienced legal professionals who are committed to helping you achieve your goals.
Veritas Global can help you through the entire due diligence process and provide you with clear, comprehensive, and credible solutions at every turn.