Investing in a business is quote often a calculated risk. While it may seem as an attractive proposition from the outside, things may look completely different once you take full control. That is why due diligence is such an important step in the investment and M&A process. When done correctly, a due diligence could significantly minimize risk and give you confidence that the investment can actually create and sustain value.
Over the last couple of decades, Due Diligence has evolved significantly. Technology, cloud computing, cryptocurrency, cross-border transactions, structuring etc have made the process quite complex, especially when done in a single deal.
KayOne's Due Diligence Services
Buy-Side Due Diligence
If you are considering making an investment in a business, you must evaluate all relevant parameters of such investment. There has to be an unbiased financial due diligence that validates, and evaluates all financial, commercial, operational and strategic aspects of the deal. It ensures that there are no ‘black holes’ in the potential target, that could derail your decision.
Sell-Side Due Diligence
A sell-side due diligence could potentially increase the trust of your buyer, and open a scope for increased valuation. By investing in an independent and professional pre-sale due diligence, you will be able to produce accurate financial information, as well as address operational, strategic and human resource issues that could make the difference between a successful sale and a long, potentially dragging transaction process.
Lender Due Diligence
As a lender, you need to ensure that your client has sufficient earnings and cash flow to repay your debt. In today’s dynamic business environment, it is essential to assess the quality of the earnings, and the reliability of the numbers produced by your client. Our team of experts, look beyond the financial numbers and help identify potential ‘red flags’, that should be considered before you sign the loan agreement.
M&A Due Diligence
Before you embark upon the process of taking over another entity, it is important that you assess the quality and reliability of the earnings and other financial numbers produced by the target. It not only ensures that you don’t end up overpaying, but also provides you a complete overview of the risks involved.
Compliance Due Diligence
The assessment of compliance risks, prior to investment or merger is becoming more common in today’s world. The primary goal of compliance due diligence is to ascertain whether the specific legal and economic risks that are material to a company have been identified and whether a compliance management system with informational, training and control components has been established to appropriately respond to these risks.
Operational Due Diligence
Most of the pre-merger synergies in the world today are IT and operations related. When investing or acquiring a new business, you want to understand the business’ operations, processes and technical capabilities. You also want to identify areas of potential cost savings and that could result in increased EBITDA.