The information gathered throughout the due diligence process is compiled in a due diligence report. The due diligence process, which entails a systematic investigation and analysis of all aspects of a proposed transaction, is carried out in order to improve investment decisions and mitigate risk for a company. The due diligence process includes a comprehensive evaluation of an entity's financial viability in terms of assets and liabilities, a detailed analysis and verification of its operations, and a comprehensive examination and verification of its material facts regarding a proposed transaction. It also entails analyzing a company's financial records and comparing them over time with those of competitors to understand the financial status and performance of the company. Further due diligence process also takes into account all legal and tax aspects including that of the directors of the Company. The results of these investigations are then compiled in a report known as the due diligence report.
Prior to making an acquisition, investment, business partnership, or taking a bank loan or other major decisions, due diligence is done to assess the value of the subject (a company or an entity) and identify major issues. The data gathered during this process is compiled into a report which clarifies how the business intends to increase profits. It presents a quick overview for understanding the situation at the time of purchase, sale, etc. Getting a clear picture of how the business will perform in the future is the ultimate goal of the report.
A due diligence report must answer the following points.
The format and the content of a due diligence report may vary depending on the industry type and the purpose of the report.
When looking for funding from outside investors or when requesting a business loan, it might be necessary to submit a business valuation due diligence report.
The following documents are taken into account for the due diligence process:
Comprising balance sheets, financial statements, income and expense statements, profit and loss accounts, articles of association, memorandum of association, shareholding pattern, certificate of incorporation of the Company, income tax returns, bank statements, employee records, director and management information, utility bills, statutory registers, tax registration certificates, intellectual property registration and other application documents, operational, legal and other financial documents, and so on.
Resurgent India Ltd is a SEBI-registered Category-I Merchant Banker with a talent pool of experienced professionals and an in-depth understanding of the nooks and corners of the market.
Our due diligence report includes a thorough investigation and critical assessment of all important aspects of a company, including its financial, operational, and legal performance. Our investigation also identifies risks and vulnerabilities that might not be apparent to an outsider to help companies make smart business decisions.