Due Diligence & Due Diligence Area & Process

Are you interested to Buy or Selling a business in Dubai or other Emirates of the UAE; We are providing the Business selection, evaluation, support in negotiations, business sales-purchase & transfer of its ownership.

One of the most important processes in the Buy or Sale business is Due Diligence (DD). DD is a process of verification, investigation, and audit of selling businesses. DD normally conducted buyers before closing a business deal.

Due Diligence (DD) Areas Process

• Selling Business: Why selling the business, the business plan, and long-term strategic goals, the complex is the company, geographical structure of the company.
• Management: Management, employee base, corporate structure, benefits, subsidiaries, security holders, voting agreements, employees policies, and background of top management.
• Financials: Verification of old financials, projections, audit reports, margins of the business, future projections, working capital, Capital expenditures, inventory, receivables, payables, debts, bank guarantees, contingent liabilities, and hidden transactions if any.
• Target Consumers: Top customers, consumer risks, warranty issues, and customer backlog.
• Technology / Patents:  Company patents, trademarks, trade secrets, technologies, Intellectual property, Intangible assets, etc.,
• Assets: Fixed assets and their locations, all lease agreements for equipment, real estate deeds, mortgages, title policies, and use permits.
• Marketing Strategies: Any franchise agreements, current marketing strategies, sales force, distributor, agency agreements
• Information Technology: Systems in place, capacity, outsourcing agreement, disaster recovery plan, software packages, annual IT cost.
• Environmental: List of environmental permits, Claims, investigations, contractual obligations, contingent environmental liabilities & other environmental laws of the land.
• Legal & Compliances: Legal cases pending, threatened litigation, claims, settled obligations, Government proceedings, MOA, AOA, Minutes of meetings, contracts, partnership agreements, Licenses, Loan agreements, and bank dealings.

Due Diligence Process PDF