Due Diligence is a form of information gathering necessary for making strategic decisions, specifically involving business analysis and assessment of current and future business risks. Investors need to know what they are buying and, most importantly, what risks exist due to past business operations.
The purpose of due diligence is to prevent potential negative surprises after purchasing or investing in a specific company. Due diligence reveals legal, tax, financial, operational, and other risks.
Tax
All tax obligations and risks, including the analysis of VAT records, income tax, and other tax areas, are reviewed to ensure compliance.
Financial
The company’s financial position is assessed through a review of financial statements, cash flows, and key financial indicators to determine financial stability.
Legal
Operational
Technology
Commercial