Thorough due diligence is essential in safeguarding a transaction process. Corporate due diligence sets out to provide an understanding of the financial performance of the business and make an assessment of financial risk. Effective due diligence can protect value on the completion of a transaction and can also lay the groundwork for the successful integration of an acquired business post-transaction.
Let RSM conduct corporate due diligence on your behalf to ensure you’re well informed about the business you’re looking to acquire. Our team will help you understand the financial risks on acquisition and after.
With due diligence, we know how best to obtain information from targets and where to look for the potential pitfalls. We can report both to the acquirer and, where appropriate, to the funders.
All due diligence activity will be defined specifically in line with each deal, but it invariably includes:
- A detailed analysis of:
- the underlying historic performance;
- cash flows; and
- assets and liabilities.
- A critique of management’s forecasts, including :
- the working capital requirements of the business;
- a review of the underlying financial systems and controls;
- a review of contractual commitments; and
- an analysis of the taxation position of the business.
For more information about our corporate due diligence services, please get in touch with our Due Diligence team. Through our affiliation with RSM International, one of the world's largest networks of independent accounting and consulting firms, we can serve your transaction and due diligence needs across the globe.