March 18, 2018

Due Diligence

Due diligence service

Due diligence service or “Special review” service will help you to detect problems early in the process as well as after the transaction.

Due diligence is a service commonly used in the activity of Merger and Acquisition (M&A). M&A now is expected to be more active, especially in the context of the current economic downturn. However, M&A is risky. Some statistics from world-renowned consulting firms show that about two-thirds of M&A result in failures. So due diligence service was born to help you determine the actual costs that will be incurred for the sale and assists you in setting up the terms of protection before concluding the agreements

What is Due diligence service?

Due diligence service is the process of studying and reviewing the whole operation and internal affairs of the target enterprise, giving the most complete and detailed picture of the business. The process of due diligence service is carried out by professionals with extensive experience in each field.

This process will provide the most accurate data on the performance and effectiveness of the company, so that the buyer can determine the value of the business, identifies potential risks.

Due diligence service is the process of studying and reviewing the whole operation and internal affairs of the target enterprise, giving the most complete and detailed picture of the business

Aspects to be examined when implementing due diligence service

Commercial Due diligence service (CDDS)

On the commercial side, we have Commercial Due diligence service (CDDS). CDDS survey the market, competitive position and prospects of enterprises in the market. The CDDS also outlines the impact on business performance. When conducting a CDDS, experts will review signed contracts, meet suppliers, contact current and potential customers, even competitors – who hold the Important information about the business.

Financial Due diligence service (FDDS)

Financial Due diligence service (FDDS)

If the CDDS is paying attention to outside influences, the Financial Due diligence service (FDDS) is relevant to the internal finances of the target company, such as equity, loans, debt. FDDS is not an audit, FDDS looks forward to the future, not just about past financial issues. FDDS will determine the current and future financial index of the business. This is an important criterion that helps the buyer determine the selling price of the target company.

Legal Due diligence service (LDDS)

An indispensable role is the Legal Due diligence service (LDDS). LDDS is the most common type of investigation and also a familiar service in an M&A case. LDDS issues warnings about the feasibility of the M&A legal field.

LDDS considers the legal issues of the target enterprise to detect current or potential risks and provides the buyer with important insights into the legal issues of the business. It indicates to the buyer whether the business they are interested in has fully complied with the law and issues the necessary legal notice for the parties to consider in this transaction.

The goal of the LDD is to make transactions as easy as possible, since it limits future disputes.

The need for information seeking and Due diligence service become a necessity for each party to conduct M & A.

Environmental Due diligence service (EDDS)

EDDS considers compliance with environmental regulations of target enterprises in the past as well as future impacts. EDDS will respond to the buyer’s concern that the business is not being sold because of environmental disputes and that there is no decision to close the business because it has polluted the environment.

Technology Due diligence service (TDDS)

Technology Due diligence service (TDDS) focuses on identifying current technology, possible improvements, or the technological backwardness of the target enterprise. TDDS avoids the purchase of a business with an outdated  technology because of the emergence of a similar or more advanced technology.

Due diligence service has become a necessity for each party to conduct a transaction. Finding a reliable provider of due diligence service is now an important task. At FYI group, we have well-trained experts to offer due diligence service to help our customers reach a successful business deal. We provide discrete and complete process of due diligence to our customers to ensure that you can make a correct decision for your company. Contact us for more detail and information.