Due Diligence Reports

WHY do a DDR

Investors are always looking for the next great start-up opportunity, start-ups are always hungry for more capital to fuel growth.

Successful investments can bring great rewards to all parties but hidden issues, judgmental assessment and/or errors can quickly turn a successful assumption into failed investment.

Due Diligence Report (DDR) is a term used for number of concepts involving investigations when investing in a business, reviewing through the financial situation of the business, customer records, legal obligation and other records before signing a contract or agreement for investment.

WHAT is the DDR process

DDR process involves, evaluating a prospective investment decision by making sure that all the facts regarding a prospective investee firm are available and are verified for its veracity & for surrounding risks. Its scope will depend on the size and scale of the transaction.

The DDR will often comprise of financial, tax, legal, secretarial and commercial reviews across multi-disciplinary teams. Its execution involves access to industry expert viewpoints both within and outside the target organization for validation.

While commercial risks inherent in investment transactions include non-financial, as well as financial factors, the spotlight is increasingly upon effective corporate governance, internal control processes (including IT Systems), corporate culture and overall risk management.

The key findings of a DDR should include factors that will impact the pricing of the transaction, possible warranties that should be sought by the buyer/seller and potential post-acquisition integration issues.

HOW is a DDR done

DDR process involves an in-depth review of the company’s business planning in the context of the commercial environment and a critical analysis of financial projections and risks.

Process of doing a DDR involves:

Creating a thorough checklist of data request.
Compiling of all the necessary documentation & company records.
Reviewing & analyzing documents that may present financial status along with risks and/or impediments to potential investment.
Compliance status reviews across Legal & Secretarial.
Preparing detailed information report upon which to base investment decisions.

HOW Ocellus can make a change!

Ocellus framework of DDR comprises of:

Gaining an understanding of the performance of the target organization.

Analyzing the key value drivers behind the investment price.

Identifying potential risks across financial & compliance areas and mitigation possibilities.

Our team of employees & associates consists of highly experienced Chartered Accountants, Legal Advisors and Secretarial Professionals who take utmost care to review all financial records as well as business and legal viewpoints.

Given the current dynamic and the competitive environment, there is a high risk of making errors, because of demand for speed in turnaround time and/or limited resources at disposal, to handle the complexities of the buy/sale transaction.

Our highly qualified & experienced team can help by assessing the potential value and risks associated with a transaction, by identifying key drivers to mitigate risks and by challenging assumptions about future performance leading to overall improvement in negotiating position of our clients.

(Sell side) We assist companies placing a business for sale to develop strategies for sale and prepare a business plan.

(Buy side) We assist Investors putting their hard-earned money into buying a slice of or to fully take over companies.