Due Diligence

Due Diligence is a process of investigating the existence of debts or pending issues of tax, labor nature and other contingencies, to confirm the data made available to potential buyers or investors. 

This process presents clear variations depending on the nature of the business and the size of the company, but basically refers to financial, accounting and tax matters, in addition to corporate, labor, environmental, real estate, intellectual and technological property issues.

However, it is a task that identifies accounting and legal assets and liabilities and assesses them at market value, in order to subsidize merger, consolidation, purchase and joint venture operations, allowing greater security in negotiations between buyers, shareholders or investors.

In this process, technical knowledge and ethical performance with guaranteed staff impartiality and confidentiality are essential for the operation to be successful.

The audit can be directed at the preparation of the company with a future sales process in mind, allowing the adoption of corrective measures, adding value to the company.

The result of the due diligence process is usually a report that outlines the general status of the subject matter of the transaction, confirms its values and identifies its contingencies.