Due
Diligence Reporting
Due diligence is a process of
investigation undertaken by various lenders including banks and
financial institutions for assessing the performance of a business.
It is a comprehensive process that can be undertaken to assess the
potential of a business during different situations including joint
ventures, merger & acquisitions etc.
Objective and Process
The objective of undertaking the process is to forecast the future
performance of an organization by analyzing the potential risks and
threats. Due diligence attempts to improve the efficiency of the
existing business processes. The process includes identifying and
analyzing important transaction issues and also identifying the
potential risks that a business might face.
Features of Due Diligence Reports
- Conducting a fair and independent analysis & evaluation of
financial and commercial information.
- Collection, analysis and interpretation of financial, commercial
and tax information in detail.
- Collecting and reviewing financial information to be provided to
bidders and various stakeholders.
- Auditing the special purpose accounts.
Due Diligence Reports
These reports are prepared by collecting, analyzing and compiling the
data collected during the due diligence process. It helps to clearly
point out the potential risks and a company's current financial
situation. These reports help to save money, time and efforts of the
management.
Professional accountancy firms undertake due diligence reporting on
behalf of the clients and help them take sound decisions. This also
helps the client save lot of money, and time spent on collecting and
analyzing financial & commercial information.