Commercial Due Diligence services are an integral part of running any business. These come in handy before going through with any business transaction, including mergers and acquisitions. Due diligence in Dubai helps companies mitigate risks associated with business transformations, and assure owners better returns and dividends. Additionally, a due diligence audit in Dubai helps ascertain stakeholders and creditors regarding the viability and security of their investment. Let us now take a quick look at Due diligence companies in Dubai and the need for due diligence service in UAE.
- Helps businesses make the best business decisions
- Gain a deeper understanding of the business
- Alerts businesses regarding any potential irregularities or frauds
- Understand the financial integrity of their business
- Helps with determining a business’s fair market value
What is Due Diligence in Dubai?
If you are a business owner on the verge of a merger or acquisition, then a due diligence service is precisely what you need. It is an integral part of any business transaction and deals with an organised investigation that reviews and analyses all the business dealings. Since business transactions can be hefty and expensive, companies should engage in due diligence services to mitigate risks and assure themselves good returns. The due diligence service also helps the owners collect and review any information that might become relevant as the sale progresses. As a result, due diligence service in UAE help businesses identify risks, prevent fraud and ensure economic viability.
What are the main categories of Due Diligence Reporting?
The primary elements of a due diligence service are as follows;
- Environmental risks and considerations
- Legal Reviews
- Discovering potential liabilities
- Financial Information
- Business Sustainability
- Cash flow management
- IT Capabilities
Doing proper due diligence will help you with the following three objectives;
- Calculate the value of the asset, company or product both in terms of money and time
- Ascertain the quality of financial information available and quantify it
- Check the brevity, genuineness and accuracy of the information provided
What are the types of Due Diligence reviews?
Most due diligence services will make use of a triangular approach where the focus falls on the legal, taxation and financial aspects of a business. However, there are various types of due diligence reports used within the UAE, and some of them are as follows;
- Carve out diligence
- Human resources
- Information Technology
- Seller due diligence
What does a Due diligence audit look at?
- Review of corporate business documents
- Run searches on the corporation
- Rundown of the company’s leases
- Reviews of material contracts
- Search for mortgages, liens and other claims
- Check the company’s equipment and assets
- Review the seller’s intellectual property
- Go through the company’s tax filings and balance sheets
- Understand the new customer and supplier contacts
- Follow up on all the work in progress jobs
- Review the status of receivables
- Analyse the business’s employee relations
While the buyer usually does the due diligence before a new deal, in some instances, the sellers will also have to perform such an audit. For instance, if the seller intends to take back debt, receive shares or has some equity deal in place, then they will conduct their due diligence process. Such a process provides both parties with the information required to reach a settlement during the negotiation.
KGRN has decades’ worth of experience in the field of accounting and auditing. Our experts can handle all your due diligence processes to help ensure you make the best business decisions. So, partner with KGRN and say goodbye to all your fiscal and due diligence-related worries!
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