Due Diligence - Overview
Due Diligence plays a Vital role in providing key Information to investment partner before closing the deal. It is an investigation process that includes an audit to affirm all the related facts under consideration. It plays a vital role to examine the financial records of the opposite party
Due diligence makes sure that the parties have the required information to proceed with the transaction. Proper due diligence is required to reveal misrepresentation and fraudulent dealings in business transaction. From sellers perspective Due diligence helps them to fix a Rate as the report gives the buyers credibility and also increases the goodwill of the business. From Buyers perspective it lowers the risk before getting into Wrong transactions.
Benefits of Due Diligence
Administration and Ownership details of Company
Inspection on Capitalisation
Competitors analysis
Balance Sheet Review
Risk analysis
To maximize the profit for the future
Documents Required For Registration
- Memorandum of Association and Articles of association
- Certificate of Incorporation
- Financial statements and bank statements
- Income Tax Returns
- Tax registration certificates and tax payment receipts
- Utility Bills
- Employee records and Operational records
Process To Register
- Terms of Engagement
- Operational Due Diligence
- Financial due diligence
- Legal due diligence
- Reporting of Information
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