Practicing due diligence supports good business sense. FY International’s business intelligence and due diligence practice helps our clients make good investment decisions. Due diligence encompasses any procedure or steps taken at a client’s request to provide assurance or comment regarding assertions made by third parties in financial statements, prospectuses or other offering documents. Due diligence may be carried out in the case of prospective business acquisitions, financing proposals, valuations, or in loss-and-damage claims on behalf of insurance adjusters.
The main objectives of a Due Diligence assignment are:
- to give the client insight into the operations of a business;
- to provide information;
- to help the client assess the risks of a transaction and therefore decide whether to proceed with the transaction;
- to help the client assess the value at which a transaction should be undertaken; and
- to help the client determine the warranties and indemnities that should be obtained from the vendor.
The end result of a due diligence assignment is a report tailored to the client’s requirements.