Due Diligence means exercising a reasonable degree of care, for example if you want to sell or buy a company. Alternatively, you might be curious about your company’s financial, tax, operational and legal health, or you might be a bankruptcy trustee seeking help with financial and tax issues. Again, you need to do your homework and a Due Diligence review will provide the understanding that you need, by mapping out the risks of a business acquisition. Depending on the business concerned and what arrangements you make, a Due Diligence review may include the following elements:
What a Due Diligence review yields
Any prospective buyer has a duty of investigation before taking over a company. It is advisable to perform a Due Diligence review. The seller has a duty of disclosure, and while a full review is not in fact necessary, it will benefit the seller by identifying and eliminating any obstacles. A Due Diligence review provides information about the following matters:
- Whether the information that the seller has supplied is accurate and complete, and whether the business is in fact as profitable as the seller suggests;
- What the quality and standard of accuracy is of the company’s accounts and records;
- What potential tax and legal risks exists.
Depending on the arrangements, the asking price might subsequently be adjusted or renegotiated.
What makes Van Oers Accounting & Consulting Services the perfect partner?
The Due Diligence specialists at Van Oers have earned their reputation over many years, and have the skills to quickly and reliably investigate the financial, tax, legal and operational status of small and medium-sized enterprises. The specialists at Van Oers:
- investigate the company until they have penetrated below the surface;
- help you to avoid unpleasant surprises;
- help you to make the most of your chances and opportunities;
- can call on other specialists at Van Oers Accounting & Consulting Services at a moment’s notice.
The tip of the iceberg is not enough: we want to map out every detail, and that is what you can expect from us.
To find out whether the asking price is right, or what the difference is between buying shares and taking over assets and liabilities, please watch the full Due Diligence presentation.