DUE DILIGENCE AUDIT
Due DIligence Audit Services in Dubai, UAE
DUE DILIGENCE AUDIT
Due DIligence Audit Services in Dubai, UAE
Due Diligence Audit in the UAE
Due Diligence Audit is an investigation Audit or examination of a business or person before signing a contract, or an act with a certain standard of care. During a Due Diligence Audit, the analysis or review could be carried out for a potential objective for the merger, acquisition, privatization, or similar corporate finance transaction, usually by a buyer.
A reasonable investigation is focusing on future material matters and current practices of process and policies. It can be a legal obligation, but the term due diligence will more commonly apply to voluntary investigations. A typical example of due diligence audit in various industries is how a potential acquirer evaluates a company that he has targeted or its assets for an acquisition. In some circumstances, sellers also opt for due diligence audit.
The businesses involved in acquisition or mergers as buyers or sellers must ensure that all the financial and other information exchanged are verified and accurate. A due diligence process will help the buyers pay more than the actual purchase price or, in the seller’s case, receiving less than a reasonable price.
Due Diligence Audit Services in Dubai, UAE
Due Diligence Audit Services
SPS-UAE – Professional auditors from Dubai, UAE, providing reliable due diligence audit services.
Get a Consultation
Pradeep Sasi | Managing Partner
Mobile: +971 55 1030961
Email: pradeep.sasi@eca.ae
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 practices, review of systems and processes, evaluation of the management team, etc.
Financial due diligence
Financial due diligence (FDD) is a process where due diligence is required to validate financial statements. The goal of the process is to ensure that the data shown in the financial statements matches with key information the investor needs. A successful FDD engagement reveals the red flags and exposes the deal breakers and highlights areas that appear weaker to the stakeholders.
Financial due diligence services help the buyer to assess financial risks of a potential acquisition to determine what the benefits, liabilities, risks, and opportunities are. Some of the areas specifically looked at in the analysis of FDD:
- Company history and background
- Operating effectiveness and earnings quality
- Employs efficiency and management quality
- Trends and forecasts of future financial performance
- Current staff structure and benefit assessment
Legal due diligence
Legal due diligence includes investigating any legal risks associated with the target company's rights and obligations. This issue may involve regulatory approvals, licenses, and other government-related matters.
Macro-environment due diligence
Economic-related risks and unpredictable factors that influence an organization's decision making and affect its performance and strategies. It considers:
- Economic situation
- Industry dynamics
- IT condition
IT due diligence
It is a fundamental part of the strategic planning process. IT is considered a value-adding part during the implementation of the plan. The marketing audit examines an organization's internal and external marketing environment and assesses its marketing objectives, strategies, and activities.
Production due diligence
Production due diligence records the production & distribution to ensure that they are appropriately maintained. Also, verify the logbook of machinery to confirm the effective and efficient performance.
Management due diligence
This due diligence examines the actions and tactics of the management to analyze their performance. Management audit involves the review of the organization's internal controls, policies, procedures, structures, controls, etc. to check the management efficiency or inefficiency.
Information system due diligence
It helps in analyzing the adequacy and controls in the Information Technology (IT) infrastructure. It looks for vulnerabilities and data safeguard mechanisms. These reviews may be performed in conjunction with a financial statement audit or stand-alone for enhancement and detection purposes.
Due Diligence Audit Services in Dubai, UAE
Due Diligence Audit Services
SPS Management Consultancies Co LLC – Professional auditors from Dubai, UAE, providing reliable due diligence audit services.
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 practices, review of systems and processes, evaluation of the management team, etc.
Financial due diligence
Financial due diligence (FDD) is a process where due diligence is required to validate financial statements. The goal of the process is to ensure that the data shown in the financial statements matches with key information the investor needs. A successful FDD engagement reveals the red flags and exposes the deal breakers and highlights areas that appear weaker to the stakeholders.
Financial due diligence services help the buyer to assess financial risks of a potential acquisition to determine what the benefits, liabilities, risks, and opportunities are. Some of the areas specifically looked at in the analysis of FDD:
- Company history and background
- Operating effectiveness and earnings quality
- Employs efficiency and management quality
- Trends and forecasts of future financial performance
- Current staff structure and benefit assessment
Legal due diligence
Legal due diligence includes investigating any legal risks associated with the target company’s rights and obligations. This issue may involve regulatory approvals, licenses, and other government-related matters.
Macro-environment due diligence
Economic-related risks and unpredictable factors that influence an organization’s decision making and affect its performance and strategies. It considers:
- Economic situation
- Industry dynamics
- IT condition
IT due diligence
It is a fundamental part of the strategic planning process. IT is considered a value-adding part during the implementation of the plan. The marketing audit examines an organization’s internal and external marketing environment and assesses its marketing objectives, strategies, and activities.
Production due diligence
Production due diligence records the production & distribution to ensure that they are appropriately maintained. Also, verify the logbook of machinery to confirm the effective and efficient performance.
Management due diligence
This due diligence examines the actions and tactics of the management to analyze their performance. Management audit involves the review of the organization’s internal controls, policies, procedures, structures, controls, etc. to check the management efficiency or inefficiency.
Information system due diligence
It helps in analyzing the adequacy and controls in the Information Technology (IT) infrastructure. It looks for vulnerabilities and data safeguard mechanisms. These reviews may be performed in conjunction with a financial statement audit or stand-alone for enhancement and detection purposes.
Due Diligence Audit Services in Dubai, UAE
Due Diligence Audit Services
SPS-UAE – Professional auditors from Dubai, UAE, providing reliable due diligence audit services.
Get a Consultation
CA PARTH SHAH | Managing Partner
Mobile: +971 55 1030961
Email: pradeep.sasi@eca.ae
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 practices, review of systems and processes, evaluation of the management team, etc.
Financial due diligence
Financial due diligence (FDD) is a process where due diligence is required to validate financial statements. The goal of the process is to ensure that the data shown in the financial statements matches with key information the investor needs. A successful FDD engagement reveals the red flags and exposes the deal breakers and highlights areas that appear weaker to the stakeholders.
Financial due diligence services help the buyer to assess financial risks of a potential acquisition to determine what the benefits, liabilities, risks, and opportunities are. Some of the areas specifically looked at in the analysis of FDD:
- Company history and background
- Operating effectiveness and earnings quality
- Employs efficiency and management quality
- Trends and forecasts of future financial performance
- Current staff structure and benefit assessment
Legal due diligence
Legal due diligence includes investigating any legal risks associated with the target company’s rights and obligations. This issue may involve regulatory approvals, licenses, and other government-related matters.
Macro-environment due diligence
Economic-related risks and unpredictable factors that influence an organization’s decision making and affect its performance and strategies. It considers:
- Economic situation
- Industry dynamics
- IT condition
IT due diligence
It is a fundamental part of the strategic planning process. IT is considered a value-adding part during the implementation of the plan. The marketing audit examines an organization’s internal and external marketing environment and assesses its marketing objectives, strategies, and activities.
Production due diligence
Production due diligence records the production & distribution to ensure that they are appropriately maintained. Also, verify the logbook of machinery to confirm the effective and efficient performance.
Management due diligence
This due diligence examines the actions and tactics of the management to analyze their performance. Management audit involves the review of the organization’s internal controls, policies, procedures, structures, controls, etc. to check the management efficiency or inefficiency.
Information system due diligence
It helps in analyzing the adequacy and controls in the Information Technology (IT) infrastructure. It looks for vulnerabilities and data safeguard mechanisms. These reviews may be performed in conjunction with a financial statement audit or stand-alone for enhancement and detection purposes.
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.
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