Inspect before you get. It is a matter of prudence and good business practice.
Due diligence is a process to independently verify that a provider or potential acquisition can fully deliver on what has been promised and usually happens as the part of a final evaluation and negotiation.
Due diligence takes different forms depending on its purpose:
- An examination of a potential target for merger, acquisition, privatisation, or similar corporate finance transaction normally by a buyer. (This can include self due diligence or “reverse due diligence”, i.e. an assessment of a company, usually by a third party on behalf of the company, prior to taking the company to market)
- An investigation focusing on material future matters
- An analysis of current practices, processes and policies
- An inspection aiming to make an acquisition decision via the principles of valuation and shareholder value analysis.
A due diligence process can be for a variety of reasons and can be a review of the entire business, or a targeted review of a specific area.
RSM offers a due diligence approach that delivers a comprehensive analysis of the target’s balance sheet, trading performance, assumptions and risks including a detailed view of the target’s cash flows, which will assist in pricing the acquisition and structuring your working capital requirements.
At the conclusion of the process we will provide you with a focussed report that:
- covers the issues that you want addressed
- highlights issues to be reflected in the sale and purchase agreement
- identifies factors that may either affect the purchase price or could lead to abandoning the deal
- if relevant, caters to overseas acquirer’s needs. This includes considering NZ specific matters such as ACC levies, Kiwisaver, employee benefits, customer and supplier dependence (given the small size of the New Zealand economy) and guidance regarding the Overseas Investment Office and Commerce Commission requirements.
HOW CAN WE HELP YOU?
Contact us by phone 0800 774 623 or submit your questions, comments, or proposal requests.