Due Diligence is the process of investigation or audit of a potential investment consummated by a prospective buyer. The objective of any due diligence engagement is to confirm the accuracy of the target’s information and appraise its value. The prospective buyer/investor should obtain all the necessary information within the predetermined time and make sure that they making a fair deal, not a costly mistake.
Avere’s dedicated transaction advisory and due diligence team can assist with financial, tax, and commercial due diligence and business analysis for organizations that are contemplating investments, strategic partnerships, mergers, and acquisitions or that are looking to enhance organizational effectiveness in an existing business unit or portfolio company.
How we can help:
- We conduct due diligence with the sole objective to generate valuable due diligence reports and business analyses for our clients, which become an integral component of their decision-making and negotiation processes. We offer a confidential, sound, unbiased perspective and are the ideal complement to client’s internal resources
- To focus on providing value-added services that enhance client business decisions by combining a thorough understanding of technologies, logistics, corporate strategy, and finance with an ability to summarize complex issues into concise, easily understood terms
Properly assessing the value of potential acquisitions and investments through due diligence can be imperative to the success of the transaction. Quality of financial statements, earning concerns, operations, market trends, and other areas that requires a closer look to assess risks and determine a company’s true value.
Our dedicated team assesses and addresses areas that are critical to the value of the company and its sound financial health including its ability to service its debt obligations:
- Quality of earnings
- Quality of underlying assets
- Debt and contingent liability
- Related-party transactions
- Commercial due diligence
- Tax due diligence
- IT due diligence
- HR due diligence
The complex and ever-changing landscape across industries continues to produce significant financial and operational challenges for any transactions to take place.
Financial Due Diligence:
Our role in a financial due diligence review involves evaluating the proposed transaction by analyzing the present and historical financial statements including important commercial agreements reviewing the operational environment and assessing the risk incidental to the business
Tax Due Diligence:
When companies acquire a business, dispose of a non-core business unit, or go into a merger with another company, they need to manage the tax risks by means of tax due diligence. We provide you comprehensive corporate tax, VAT, exercise tax, other direct and indirect taxes due diligence while focusing on risks as well as opportunities.
Technology Due Diligence
During our IT/Technology due diligence review, our expert IT Advisory team will:
- Identify the issues and potential risks that may affect the company’s revenue, its costs, and the purchase decision as a whole.
- Assess the reliability and scope of IT applications, processes, and infrastructure, and how well they meet current and future business requirements.
- Assess the real IT costs, identifying hidden expenses and areas of potential financial risk
- Help with defining transaction terms in detail based on IT impact analysis.
Our due diligence professionals have significant experience in handling client’s specific needs on maximizing the value in the transaction and ensuring a smooth due diligence process has adhered. Whether the transaction is for acquisition, sale, or refinancing, we adapt our due diligence services to meet the specific needs of the clients.
The purpose of due diligence is to validate the buyer/creditor’s investment thesis by reviewing the assumptions made at the time of negotiating a transaction, looking for problems and opportunities that were not known to our clients, and providing them with data and insights to devise a post-transaction plan.