Due diligence is about gathering enough information to make an informed business decision regarding risk vs. reward of a given business opportunity.
At Doherty & Associates, our experienced team accesses the risk and identifies any potential red flags. Further, we help to define key performance indicators (KPIs) to watch going forward. Due diligence cannot eliminate risk. There is an inherent risk in all business transactions. However, we can assist the decision-maker in understanding the potential of a given deal.
Due Diligence – Business Transactions and Corporate Finance
We help clients develop or fine-tune their strategy and business planning process by providing both internal and external diligence. Results include a company mission, a focused business plan for future growth and profitability, and funding proposals and introductions.
Due diligence takes different forms depending on its purpose:
- The examination of a potential target for a merger, acquisition, privatization, or similar corporate finance transaction typically undertook by a buyer. (This can include self due diligence or “reverse due diligence,” i.e., an assessment of a company, usually by a third-party on behalf of the company, before taking the company to market.);
- An assessment of a startup venture, its team, and its potential in the market for investment;
- An examination of ongoing operations to determine viability, efficiencies, compliance, and opportunities;
- A gathering of information useful for valuing assets, defining representations and warranties, and negotiating price concessions;
- An assessment of valuation and shareholder value.
Due diligence should begin to answer the question: Does this investment have the potential to generate the kind of return I expect, and what could potentially undermine achieving a positive outcome? It is essential to determine whether the rewards outweigh the risks. And while we cannot guarantee the outcome of any particular investment, our goal is to ensure that you have all the information you need to assess risk accurately.
How Much Due Diligence Needs to Be Conducted?
There is no correct answer to this question. The amount of due diligence conducted is based on many factors, including prior experiences, the size of the transaction, the likelihood of closing a deal, tolerance for risk, time constraints, cost factors, and resource availability. It is impossible to learn everything about a business, but it is important to learn enough so that you can understand the risks involved and make sound, informed business decisions.
Due diligence is about gathering enough information to make an informed business decision regarding risk vs. reward. Whether you are considering buying a business or making an investment, conducting due diligence ensures you have access to important information about the company. It’s the best way for you to assess the value of a business and the risks associated with buying it.
Business Case Development
Business cases are the justification to move forward on a business concept or project. The business case is developed to obtain management commitment and approval for investment in the new endeavor or a business change.
A business case provides a framework for the planning and management of the new program or organizational change. The ongoing viability of the effort is ten monitored against the business case.
The business case includes:
- The Reason – The Business Challenge and a Proposed Solution
- The Necessary Data
- Timescale, Costs
- Build A Current State Forecast
Create A Future State Forecast
- Major Risks and Opportunities
- Analyze The Alternatives
- Risk versus Reward Assessment
We offer a full range of business case services from improving organization-wide capability for business case management across the investment portfolio to business case development for individual programs and projects.
Our approach is tailored to meet the client’s specific needs.
Due Diligence and Business Case Development
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