Due Diligence Audit Services in Dubai, UAE
Due Diligence Audit Services
Emirates Chartered Accountants Group - Professional audit firm in Dubai, UAe, providing reliable due diligence audit services.
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Pradeep Sai | Managing Partner
Mob: +971 556530001
Email: sai@emiratesca.com
Operational due diligence
Operational due diligence deals with the review of non-financial matters of a business, which may include insurance and risk assessment, HR activities, review of systems and processes, evaluation of management team etc.
Financial due diligence
Financial due diligence is a due diligence process where due diligence is required to validate financial statements. The goal of the process is to ensure that all stakeholders associated with a financial endeavour have the information they need to assess risk accurately. Also, financial due diligence helps to expedite the deals with fewer risks and capture and deliver value to stakeholders.
In particular, financial due diligence allows the buyer to assess all financial aspects of a potential acquisition to determine what the benefits, liabilities, risks, and opportunities are. Financial due diligence consists typically of the analysis of :
- Company history and background
- Operating effectiveness and earnings quality
- Employee strengths/ weaknesses & commitments
- The strength of the financial position
- Current and future cash flow assessment
Legal due diligence
Legal due diligence includes investigating any legal risk associated with the target company's rights and obligations. The issues may involve intellectual property, employment disputes, and property ownership.
Macro-environment due diligence
It considers the major external and uncontrollable factors that influence an organization’s decision making and affects its performance and strategies.
Environmental due diligence
It considers the evaluation intended to identify environmental compliance and management system implementation gaps and related corrective actions.
Marketing due diligence
It is a fundamental part of the marketing planning process. It is conducted at various points during the implementation of the plan. The marketing audit considers both internal and external influences on marketing planning and a review of the plan itself.
Production due diligence
It verifies the production records such as production slips/memos to ensure that they are appropriately maintained. Also, verify the logbooks of machinery to check the details of production.
Management due diligence
It is a systematic examination of the decisions and actions of the management to analyze the performance. Management audit involves the review of managerial aspects like organizational objectives, policies, procedures, structure, control, and system to check the management's efficiency or performance over the company's activities.
Information systems due diligence
It is an examination of the management controls within an Information technology (IT) infrastructure. The evaluation of obtained evidence determines if the information systems are safeguarding assets, maintaining data integrity, and operating effectively to achieve the organization’s goals or objectives. These reviews may be performed in conjunction with a financial statement audit, internal audit, or another form of attestation engagement.
Due Diligence Audit - Benefits to Buyer
Due Diligence Audit process helps the buyer by enhancing the understanding of the target business; a proper analysis of critical success factors, digging out the real historical track record; sustainability of profit and cash flow generation; assessment of normalized profit; providing opinions on the Target Company’s current financial status and prospects, providing a view of the quality of the management team, and specifically about the accounting and finance teams.
Through the due diligence process, the buyer will assist as an expert in the negotiation process, reviewing Sale purchase documents like representations, warranties, indemnities, etc.
Due Diligence Audit - Benefits to Seller
Due Diligence Audit process helps the seller management to collate vital financial information, assess and advise on potential issues that a buyer may arise, and provide process support.
Due diligence takes different forms depending on its purpose:
This can include self-due diligence or “reverse due diligence,”, i.e., an assessment of a company, usually by a third party on behalf of the company, before taking the company to market. An examination is achieved by asking specific key questions, including how we buy, structure the operation, etc.
