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Due Diligence Service
Due Diligence Services in Abu Dhabi, UAE
Due Diligence Services In Abu Dhabi, UAE
Due Diligence is defined as an investigation or audit of a potential investment, product, or a key business decision in order to confirm all facts pertaining to it. A good due diligence goes beyond the numbers and aims to analyze what lies behind these. Since a due diligence helps to gain a deeper understanding of the target organization or investment, it is prudent for any individual or organization to carry out such an exercise in order to protect themselves against any unforeseen risks. It helps to understand the company competencies, the target market, potential customers and profit-making capabilities. It helps is decision making, keeping all risks and opportunities on front. Due diligence audit can be a legal obligation, but it commonly applies to voluntary investigations.
When a business opportunity first arises, it continues throughout the talks, initial data collection and evaluation commence. The purpose of due diligence is to assist the purchaser or the investor in finding out all the care that a reasonable person can, about the business he is acquiring or investing in prior to completion of the transaction including its critical success factors as well as its strength and weaknesses.
In addition, it may expose problems or potential problems that can be addressed in the price negotiations or by dealing suitable clauses in the contractual documentation, in particular, warranty and or indemnity provisions
Pioneer Hedge is one of the leading and established firm of providing Due Diligence Services to ensure the seamless operations and profitability of your business.
Types of Due Diligence
Following are the most common type of due diligence audit
Financial Due Diligence
The purpose of hiring financial due diligence auditors is to know the financial risk & forecast of the company. It also includes funding requirements of a business in future. Focuses on verifying the financial information provided and to assess the underlying performance of the business in terms of earnings, assets, liabilities, cash flow, debt, management etc
Commercial Due Diligence
Commercial due diligence will determine the various commercial factors including competitors analysis, target market research, product reviews, service feedbacks & any other data the acquirer want to know. Aims at understanding the market through review of market conditions, sector-specific legislation, competitor analysis, product or service assessment or any other commercial aspects the user wishes to investigate
Operational Due Diligence
The operational due diligence involves examining the non-financial factors of a company. To have the better understanding of business operations, organizational structure, internal process& system, performance evaluations of the management team and HR process of a specific company, auditors in conduct this type of due diligence audit.
Tax Due Diligence:
It is a separate due diligence exercise but since it is an integral component of the financial status of a company, it is generally included in the financial due diligence. The accountant has to look at the tax effect of the merger or acquisition
Legal Due Diligence
Legal Due Diligence helps to evaluate any legal risks involved with the company
Importance Of Due Diligence audit
A transaction backed up by a due diligence audit has a better chance of being successful. If something is amiss during the transaction, the due diligence audit will likely bring everything back to light. It enhances the quality of the information and will therefore allow you to make a good decision. We offer all kinds of due diligence audit services to help you in making a decision without getting into any kind of post-transaction trouble.
Benefits of Due Diligence Audit
- To provide the bidder with an independent assessment and review of the target company.
- Identify and quantify the areas of financial , commercial risk and opportunities etc.
- Give assurance to provider of finance.
- Place the bidder in a better position for determining the value of the target company.
