Due Diligence Report - Process, Importance and Types

 

What is Due Diligence Report?

Due diligence is a simplistic process that includes research and analysis before an acquisition, or investment. Also, it is done before a business partnership or bank loan, to understand and find out the value of the subject undertaken for due diligence report. Further it is relevant to ensure that there are no issues involved, which can be a blocker in the process. 

Here’s how the due diligence process works.

  • Analysis of multiple aspects is executed to find out the estimated value of the respective entity based on its market potential.

  • Assessment and monitoring of the assets and liabilities in detail to determine the financial viability of the entity.

  • Examining of the operations and verification of the data related to the entity that are relevant to the proposed transaction.

Original source: https://www.resurgentindia.com/due-diligence-report-process-importance-and-types

Comments

Post a Comment

Popular posts from this blog

Long Term Project Finance Mechanism: Need For A Re-look

Image
  The long-term   Project Finance   for infrastructure and industrial sectors essentially involves a limited recourse to financial structure, since project debt and equity utilized for constructing the project are paid back from the cash flows generated by the project itself. This implies financial engineering of lending, solely against the cash flows of the project, not relying upon any other securities. A detailed evaluation and thorough analysis of the various risks involved are undertaken and the mitigation steps are identified for the prospective lenders, promoters, and other parties involved. The term loans for large projects are generally repayable in up to 20-25 years depending upon the economic life of the project, after the initial moratorium during the gestation period. The current unprecedented situation arising out of covid-19 disruptions and responses from the regulators has provided us with a lot of learning inputs, necessitating a re-look at the funding me...
Read more

Loan Syndication : A Complete Overview

Image
  Loan syndication   refers to the process where multiple lenders come together to fund various portions of the loan asked by a single borrower. The process is majorly done when the amount is very large for a single lender or when the risk exposure levels are quite high. Therefore, multiple lenders form an association or syndicate to fund the requested capital. The borrower can be a corporate entity, government or an individual project. In corporate financing, loan syndication process is often used for diverse business reasons like project financing, mergers, acquisitions, buyouts, etc. where huge amount of capital is required and is normally outside the resource capacity of a single lender. Each lender’s liability/rights is only limited to the amount of their share of the total loan amount. In the process of  loan syndication,  one lender acts as a manager or arranging bank on the behalf of other lenders who administers the loan. The agreements between the lenders a...
Read more

Pitch Deck Services for an Investment Round.

Image
  A pitch deck services is a brief presentation providing potential investors with an overview of your firm. A pitch deck is often called a start-up or an investor pitch deck.  An effective pitch deck needs to be geared to the audience and the forum in which it is being presented. Products, business models, introduction to the team, your monetization plan, financial estimates, and so on are all important components of a pitch deck presentation. Establishing a business's credibility is one of the most vital functions of a pitch deck.  Original source : https://www.resurgentindia.com/pitch-deck-services-for-an-investment-round
Read more