Due diligence or due diligence is the process of information search about a company. It includes aspects such as its area of activity, the possibilities and future prospects of the business, and the status of its assets and liabilities. At Verum, we are dedicated to obtaining all the necessary information for our clients to objectively assess and determine the final price of an acquisition transaction, the structure of the transaction, and the requirement for guarantees, or if necessary, the advisability of reversing the purchase due to the detection of risks or the emergence of new information.
At Verum, we perform two different types of due diligence analysis; the economic-financial analysis consists of a rigorous and detailed purchase audit that affects both the financial statements and the valuation of tangible and intangible assets in order to accurately describe the sector, the company, the strategy, the accounting and internal control systems, the financial information, the financial situation, the organization, and the human resources; and the legal analysis in which we examine the legal aspect by reviewing contracts, corporate matters, and potential litigation, thereby avoiding hidden commitments or agreements that could jeopardize the transaction.
Verum develops a coherent and informed post-integration strategy, identifies and quantifies potential exploitable synergies, identifies any hidden liabilities regarding the provided guarantees, incidental issues, or possible tax contingencies, and determines potential environmental and labor contingencies related to the business’s personnel. With all of this, we reduce the transaction risk by providing the buyer with an independent and detailed evaluation of the business and reviewing the existence of potential hidden liabilities or contingencies in all areas of study or review.
Once the review process is completed, and as the final result of the Due Diligence process, Verum will prepare a detailed report that includes all the aspects reviewed and the conclusions reached regarding:
- The commercial review
- The review of industrial and technological aspects
- The review of company assets and liabilities
- The review of future forecasts
- The management
- The personnel
- The accounting review
- The tax review
- The legal review.