Financial Due Diligence
In M&A process, the selling-side submits information about a target company and a potential acquirer goes through the process of verifying the submitted information. ‘Financial Due Diligence’ is the process which the buying-side evaluates and investigates a target company or its assets for a certain time period.
We provide due diligence consulting service to review the suitability of acquiring purpose and to prepare management strategies for the after acquisition.
1. Review Propriety Of Financial Accounting Information.
Evaluating toxic assets, identifying unrecorded liability, and analysing profitability.
2. Identify Contingent Liability.
guaranty debt, lawsuit issue, environmental issue, and tax issue.
3. Evaluate Intangible Assets.
Evaluating patent or goodwill.
4. Identifying Additional Investment Scale.
Identifying the size of additional investment by reviewing future business plan and investment schedule(Capex).
5. Review Cash Flow.
Reviewing financing, debt redemption, and cash flow for operation.
6. Understand Employees.
Identifying employees’ attitude, relationship with employees, and tendency of labor union.
7. Prepare For Follow-up Management.
Identifying core manpower, strength and weakness, and reviewing management direction after acquisition.