“Diligence is the mother of good fortune”
The business buying process has lots of twists and turns, but no part of the process is more important than due diligence. Due diligence is the process of evaluating a business situation from all aspects before making a decision. Due diligence is performed to protect both parties, but primarily the purchaser, in uncovering potential liabilities and financial matters, to make sure nothing is hidden.
Why do I need to conduct due diligence if I am buying a company?
If you are buying a business and you don’t want any spiteful surprises, you must do your due diligence. Most important to the due diligence process are financial records. Records reviewed include balance sheets and income statements for past years, projected financial statements, insurance coverage, tax filings, and sources and uses of funds statements. Verify profitability and check company financial data against common financial ratios.
How can you help me? What makes you different?
“For us, it is not just about being better; it is about being of ultimate quality”
This is our approach in conducting due diligence for target companies:
- Examine all records and documents of the target company; on top of all, a thorough examination to the financial statements is done in accordance with the best practice applied globally;
- Spend time at the business location, talking to managers, executives, employees;
- Check sales against customer lists to verify that the business has the customers it says it does;
- Look at potential future plans for expansion, condition of facilities, and property, like equipment, furniture, and fixtures to verify that they are as reported;
- Look at all documents which might incur liability for the company, including sales agreements, purchase agreements, lienson assets.
We can also provide monthly visits to make sure that things are still on the right track and/or the required corrective actions in case of deviating out from the planned path.