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Due diligence is related to the procedure of investigation and in-depth analysis of a company, in order to identify the current situation of the Business.
Initially, the Organization’s pertinent information is collected, accompanied by the verification of specific documents. The focus of the study is to assess and diagnose management processes, with the aim of minimizing risks and ensuring that the company does not suffer from possible financial losses.
Basically, the Due Diligence process involves analyzing the Company’s accounting, financial and tax processes. This is a more complex audit, where the investigation is present to understand the future projections of the Business, its positioning in the Market and main related risks within its segment.
All entrepreneurs seeking to expand their business must know the real situation of their company, the Due Diligence process is the ideal tool to guide entrepreneurs in their strategic planning.
Due Diligence is necessary and applicable in various situations involving investments or financial expenses, from product purchase and sale transactions, as well as Merger, Demerger and other corporate restructuring models.
The duration of the Due Diligence process varies depending on the structure of the Business, as in the Accounting Audit procedure, the execution of the Due Diligence analysis is more comprehensive and detailed, precisely because it focuses directly on the assertiveness of the results. Here, the role of the accounting professional is to carefully study all the Company’s documents and operations. The more information analyzed during the study, the more productive and concrete the concluding report will be.
Applying Due Diligence is extremely necessary to identify the viability of your venture. For this reason, we list below some advantages obtained by carrying out the study, such as:
Due to its scope, conducting the Due Diligence process requires a team of qualified professionals with broad expertise in the Tax, Accounting and Financial spheres, also including knowledge in Valuation and Strategic Management.
With over 30 years of experience, Conmax is a specialist in the Due Diligence process. Does your company need a consultancy? Our team is specialized and ready to help!