An in-depth audit of a target firm by an acquiring firm. Offers are often made contingent upon resolution of the due diligence process.
Due diligence is done to confirm the baseline initially set and as it evolves during subsequent negotiations - when acquisition or merger takes effect. Some key aspects include:
- Financial verification: Baseline costs for each element of involved business assets and processes. Usually these costs refer to the initial or baseline year of the contract.
- Procurement verification: this is about third party licenses and associated costs. This includes both initial license fees and subsequent maintenance costs.
- Infrastructure verification: Asset inventory and associated costs, including building, plant & machinery, computers, peripherals and networks and other such like items.
- Human Resources: Employee costs, including benefit plans, salary scales, union involvement, and organizational structures.
- Processes and Systems: Processes and methodologies used by the organization.
There are other aspects that are equally important such as culture, governance models and so on.
We at Avante duly perform the related activities diligently and meticulously to facilitate the decision making process.