Financial Due Diligence
Process through which it seeks to obtain all the information needed to assess and fix objectively; the final price of an acquisition of companies; how to structure the transaction; and collateral requirements or, if, the desirability of reversing the purchase or risk detection by the appearance of new information.
Within it we can distinguish two types of analysis:
- Economic and financial analysis: audit is a rigorous, detailed purchase affects both the financial statements, as to the valuation of tangible and intangible assets (property, Brands, market share, etc.). This comprehensive review also aims to collate and study the feasibility of the business plan prepared by the management team.
- Anal for legal: the process of due diligence, in its legal side, is based on the review and study of contracts, review of corporate issues and the study of possible litigation. It also includes tax and labor review. Its importance is to avoid hidden commitments or agreements that could put in danger the operation are.