Due-Diligence

Presented ByHM Rumi AMin

HMRA

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Due-Diligence (DD) Marketing and Commercial

INTRODUCTION

•Due-Diligence (DD) is an analysis and risk assessment of an impending business transaction.

• Careful and Methodological Investigation of a business

• It is basically a “Background Check” to make sure that the parties to the transaction have the required information

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The DD Process

• Conducting DD is a Merger or acquisition requires a sense of the whole as well as of all the key parts

• The DD phase of any acquisition- the study of the risk that deal poses which can make the difference between success and failure

Many a deal looks good on the back on the envelop looks bad in a spreadsheet.

• Acquisition must face all the fact even worst case scenarios. This is why DD must be considered in conjunction with other acquisition activities and goals including strategic planning, valuation, financing structuring and most important changing the future of the company with all new risk and opportunitiesHMRA

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An obvious question that arises is: what order of diligence is Due-Diligence , in that séance

DD to a decision stands outside this entire hierarchy.

More in depth the following statement will abundantly clear the idea;

Diligence is a relevant term including of exact definition what would amount to DD under one state of fact would fall absolutely short of it under another and different state.

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Due-Diligence

The DD M& A is a process whereby investors/buyers and their advisors conduct a comprehensive investigation and analysis of their target company. In aspects such as business, financial, legal, operations, technologies and environment;

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Why DD is badly Done

DD is usually badly done. The reason is threefold;

1. It is usually left to the last minutes2. The aim of DD are not well understood3. Fear and greed in the way of a properly executed process

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Process Flow for the Transaction

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DD Valuation, Negotiation and Agreement

• DD process allows investors to assess risk involved in the transaction and understand the business of the target for the valuation

• Negotiation of the pricing and the definitive agreement will be based on the DD.

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Due-Diligence

Documents

Transcript of Due-Diligence