M&A and Due Diligence

Due diligence for the M&A process is the process through which a potential acquirer evaluates a target company or its assets for acquisition.

Due diligence is a parallel communication process involving legal affairs, financial affairs, administration, business, and personnel affairs, to extract the important details of the administration of an M&A deal. Evading risk or an unexpected situation after the purchase is based on due diligence or management of the risks of the acquisition.

Due diligence is not just a matter concerning assets and debt. It is also about an identification of earning capacity, the situation surrounding the stakeholders, management resources, the internal environment, business processes, future market trends, competition and the customer situation. Having the capacity to grasp the whole situation may be a difficult task though necessary for a comprehensive compliance response.

Ultimately, when you can’t trust something, D-Quest is there to deepen the verification process.

	Build a trusting situation for target company (Bankruptcy, bankruptcy history, lawsuit)
	Sales results, customer structure, product-structural change etc.
	Assign appropriate key point of contact