DUE DILIGENCE
In today's highly competitive, deal making environment where companies are looking
forward to large scale expansion either domestic or transnational, buyers and sellers
need reliable information for managing the complexities of the transaction.
It is of prime importance to identify viable opportunities and gauge potential threats
without losing much time as the business environment continues to be volatile and
fluid.
R&A employs a focused methodology to rapidly assess business transactions to avoid
costly missteps that may arise as a result of incomplete or flawed information.
With a focus on feasibility and financial viability of the transaction, R&A generates
objective and reliable due diligence reports that form an integral component of the
decision making process and serve as an ideal complement to the internal resources of
its clients.
Financial Due Diligence
R&A offers financial due diligence services for clients that are contemplating
investments, mergers and acquisitions or strategic partnerships. IT assesses the
financial position of the target by looking at earnings history, nature of cash flows,
future earnings potential, nature of substantive liabilities and assets, working capital,
tax compliance etc.
R&A conducts an extensive review of financial statements and financial pro formas to
ensure that the projected financial statements are accurate and reflect the reality. This is important not only to avoid overboard pricing but also to ensure that the internal control and risk management objectives are met.
Corporate Due Diligence
To realize the maximum value and to evaluate competing investment opportunities,
conventional financial reviews and forecasts are necessary, but not sufficient. They
must be complemented by an assessment of the fit and synergy potential of both the
parties to the deal.
R&A works alongside its clients to identify and assess key risk factors and uncertainties
including factors like corporate history and ownership structure, litigation history,
environmental performance, business and political affiliations, cultural differences etc.