Other auditor services: Due diligence

Who are the users of due diligence?

Financial due diligence services are designed for investors, who are considering the acquisition of a new company. Investors need to be sure that once they acquire a company they will not have to face negative financial surprises or other problems that had not been aware of beforehand or that the seller might have failed to provide enough information on. The purpose of due diligence is to discover any potential problem of this kind.

 
Due diligence, risk assessment
Above all, due diligence is a complex investigation of all operational and financial aspects of a company. Due diligence conclusions should provide investors with clear answers to the following questions:

• what risks may be hidden in submitted documents?
• do these risks represent substantial values?
• how should they affect the final purchase price?
• what items should the investor add to the extended balance sheet?

Based on the investor’s instructions, due diligence may focus on a company’s balance sheet, its assets and liabilities or just on specific issues and areas.