Due diligence is an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for an acquisition.

In theory, due diligence in the M&A process should take no longer than 60 days. When buying or selling a business, you want to close a deal as soon as possible. You should not submit or agree to a letter of intent (LOI) with a longer time frame. In reality, however, the due diligence phase can take longer than 60 days

The due diligence process (framework) can be divided into eight distinct areas

1. Compatibility audit.
2. Financial audit.
3. Macro-environment audit.
4. Legal/environmental audit.
5. Marketing audit.
6. Production audit
7. Management audit
8. Information systems audit.

REASONS to hire our AUDITING & DUE DILIGENCE SERVICES:

1. Under Sai Kalp due digilllince report will provide the critical and independent assessment whether the target company comply with the environmental policy or not. If it does’t comply, the quantification of those potential liabilities will be assessed and reported.
2. This engagement with Sai Kalp will conduct the independent review of the target company whether complies with the environmental policies or not. If it doesn’t comply, the quantification of those potential liabilities are assessed and reported.
3. People working with the target company are the main important assets and also the main important liabilities. The Sai Kalp team involves studying of the old organizational structures along with the new one which might establish if the acquisitions are a success.

key Features of our Advisory And Consulting

Our reports would include detailed analysis on below points which would help the organization for a better tomorrow

1. Financial Matters.

• Are the company’s financial statements audited, and if so for how long?
• Do the financial statements and related notes set forth all liabilities of the company, both current and contingent?
• Are the margins for the business growing or deteriorating?

2. Technology/Intellectual Property.

• What domestic and foreign patents (and patents pending) does the company have?
• What registered and common law trademarks and service marks does the company have?
• What copyrighted products and materials are used, controlled, or owned by the company?

3. Strategic Fit with Buyer.

• Will there be a strategic fit between the company and the buyer, and is the perception of that fit based on a historical business relationship or merely on unproven future expectations?
• Does the company provide products, services, or technology the buyer doesn’t have?
• Will the company provide key people (is this an acqui-hire?) and if so what is the likelihood of their retention following the closing?
• Guaranties, loans and credit agreements

4. Material Contracts.

• Customer and supplier contracts
• Agreements of partnership or joint venture; limited liability company or operating agreements
• Contracts involving payments over a material dollar threshold
• Settlement agreements
• Past acquisition agreements