Due Diligence Report (DDR) services in Bangalore | Ocellus

Frequently Asked Questions About Due Diligence Reports

Does Ocellus provide both buy-side and sell-side due diligence services?

Yes, we provide both buy-side and sell-side due diligence services. If you are an investor or acquirer, we can help you assess a target company’s financial, business, tax, legal and compliance risks before making a transaction decision. If you are a founder or seller, our sell-side due diligence support can help you identify potential issues, strengthen your preparedness and present the business more confidently to prospective investors or buyers.

Can Ocellus conduct only financial due diligence, or do you support broader due diligence reviews?

We support financial and accounting due diligence as well as broader multidisciplinary due diligence reviews. Depending on your transaction, we can cover financial, tax, legal, secretarial and commercial areas. We tailor the scope to your transaction objectives, industry, business structure and specific risk areas so that the review focuses on the matters most relevant to your investment, acquisition, fundraising or sale.

How is financial due diligence different from a statutory audit?

Financial due diligence and a statutory audit serve different purposes. An audit primarily examines historical financial statements and provides an audit opinion, whereas financial due diligence is focused on a transaction and can examine the sustainability of earnings, cash flows, working capital, liabilities, projections and other factors relevant to an investment or acquisition. Having audited financial statements does not necessarily remove the need for a transaction-focused financial due diligence review.

What information and documents does Ocellus need to start a due diligence review?

The information we require depends on the transaction and the agreed scope, but it can include financial records, company records, contracts, compliance documents and other information needed to assess the business. We begin by developing a structured data-request checklist and reviewing the relevant records provided by the company. Having an organised virtual data room or document repository can also help us carry out the review more efficiently.

Can the due diligence scope be customised for the size and nature of the transaction?

Yes, we customise the due diligence scope according to the size, structure, industry and objectives of your transaction. Depending on your requirements, our review can cover financial, tax, legal, secretarial and commercial aspects. This allows us to focus on the risks, value drivers and areas of concern that are most relevant to your proposed transaction instead of applying the same review scope to every assignment.

What does a financial due diligence review look for beyond the reported financial statements?

Our financial due diligence review goes beyond simply examining reported financial statements. Depending on the agreed scope, we can assess revenue and cost trends, cash flows, liabilities, working capital, financial projections and other factors that may affect the sustainability and value of the business. We also look at the underlying financial information and assumptions that can influence your assessment of the target and the proposed transaction.

Can a due diligence report help identify issues that may affect valuation or deal terms?

Yes. Our due diligence findings can help identify issues that may influence transaction pricing, warranties, protections, risk mitigation or post-acquisition requirements. The objective is not simply to document what we find, but to highlight matters that could be relevant to your transaction decision and subsequent discussions. Depending on the engagement, we can also support post-diligence clarifications and deal-structuring discussions.

What happens if the target company has incomplete or inconsistent records?

We identify and assess incomplete, inconsistent or missing information as part of the due diligence process. Where necessary, we may seek clarifications, supporting documents or additional information to understand the issue and assess its potential significance. Material information gaps and limitations can then be highlighted in the due diligence findings. The exact approach will depend on the nature of the information available and the agreed scope of our engagement.

How long does a due diligence engagement take?

The time required for a due diligence engagement depends on the size and complexity of the transaction, the number of areas being reviewed and how quickly the required information is made available. A straightforward financial review may require less time than a multidisciplinary review covering multiple entities or several transaction workstreams. Once we understand your requirements and scope, we can provide a more appropriate timeline for the engagement.

How much does a due diligence report cost in India or Bangalore?

The cost of our due diligence services depends on the scope and complexity of the assignment rather than a single fixed price. Factors can include the size of the transaction, number of entities, review areas, volume of information and specialist expertise required. Once we understand your transaction and the level of review needed, we can provide a customised commercial proposal.

Is due diligence useful for startups and smaller companies, or only large M&A transactions?

Due diligence is relevant to startups and smaller businesses as well as large M&A transactions. We can support businesses that are raising capital, preparing for a sale, being acquired, bringing in investors or entering another significant strategic transaction. We tailor the depth and scope of the review to the size, complexity and objectives of the transaction rather than applying a one-size-fits-all approach.

Can founders use due diligence before putting their company up for sale or raising investment?

Yes. We can conduct a pre-transaction or sell-side due diligence review to help founders identify financial, compliance, commercial and operational issues before prospective buyers or investors begin their assessment. This can help you address potential concerns earlier, strengthen the information presented to stakeholders and improve your preparedness for fundraising, investment or a business sale.

Can an international investor or company engage Ocellus for due diligence on an Indian business?

Yes, we can discuss due diligence requirements for international investors or companies evaluating an Indian business. Our due diligence services can cover financial, tax, legal, secretarial and commercial aspects relevant to the target. For cross-border transactions, the exact scope will depend on the target company’s structure, transaction type and applicable regulatory requirements, so we recommend discussing the specific jurisdictional requirements with our team before the engagement begins.

How does Ocellus’s multidisciplinary due diligence team support a transaction?

Our due diligence work can bring together financial, accounting, legal, tax, secretarial and commercial perspectives depending on the scope of the assignment. Our team and professional associates include Chartered Accountants, legal advisors and secretarial professionals, allowing us to examine a transaction from multiple relevant perspectives. This multidisciplinary approach can help you identify interconnected issues that may otherwise be overlooked when individual areas are reviewed in isolation.

What happens after the due diligence report is delivered?

We can help you use the findings to support the decisions and discussions that follow the due diligence exercise. Our findings may be relevant to transaction pricing, warranties, risk mitigation, deal structuring and post-acquisition considerations. Where included in the engagement, we can also provide post-diligence clarifications and support discussions around the implications of the findings for your transaction.