Due Diligence is an objective, independent and comprehensive assessment of an investee or acquisition. Due Diligence - is a procedure for an objective and independent assessment of an investee. In fact, this term means a thorough study, first of all, of the financial and legal status of a business by an independent expert organization. The term dictionaries is usually translated as “checking the reliability of the financial condition of the company”, “due diligence” or “due diligence”. For Due Diligence, the fundamental principles are the thoroughness and objectivity of the audit, and the main goal is to minimize the risks of the investor. The consulting company, providing this service, is actually engaged in protecting the interests of the investor. Types Due Dil
There are several types of Due Diligence. They differ in type of verification and object.
General DueD
Conducting a “General Due Diligence” involves a complete and comprehensive review. The financial condition of the company is checked, legal risks, the quality of management, the state of taxation, and current market positions are assessed. Simply put, a complete portrait of the company is formed based on which the investor can make an informed decision.
Financial due diligence
All aspects of the financial condition and the valuation of the object of study are investigated. An examination of assets and liabilities and expert assessment of their value. Experts of a consulting company conducting financial Dew Deal reveal whether the value of assets is too high, whether there are unaccounted for debt obligations and other risks that could change the financial condition for the worse in the future. More information here - https://en.wikipedia.org/wiki/Due_diligence
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