Due Diligence
Acomprehensive investigation or audit of all material aspects of a potential investment. Areas of investigation for due diligence for a potential company acquisition often include operations, management,...More
financial statements and the overall risk profile of the organization.
Due diligence benefits from a pre and post-merger checklist that involves all items that can have a material impact of the value of an acquisition. If a firm overvalues assets, does not identify or properly value liabilities, or does not get an accurate assessment of the risk profile of a potential acquisition, then the acquirer may overvalue the firm it is acquiring and pay too much. The due diligence of acompany can drive the valuation of a potential acquisition target. That valuation may be outsourced or at least validated by an outside firm that does corporate valuations for a living. Less
Due diligence benefits from a pre and post-merger checklist that involves all items that can have a material impact of the value of an acquisition. If a firm overvalues assets, does not identify or properly value liabilities, or does not get an accurate assessment of the risk profile of a potential acquisition, then the acquirer may overvalue the firm it is acquiring and pay too much. The due diligence of acompany can drive the valuation of a potential acquisition target. That valuation may be outsourced or at least validated by an outside firm that does corporate valuations for a living. Less
Recent Activity
Annette Nellen (Professor, San Jose State University)
Part 2 of my short article in the AICPA Tax Insider on due diligence reminders for the current filing season is now available - here. (Part 1 is available here). Part 2 focuses on charitable contributions, unreimbursed employee business expenses, foreign...
Anonymous (CFO)
I have been watching another conversation on the site with some interest: http://www.proformative.com/og/discussion/general-content/managing-credit-rating. It's all about companies managing their credit ratings with D&B. I think that is more about small...
Robert Hawn (Attorney, Structure Law Group, LLP)
Before entering into any large business transaction, such as a merger, an acquisition, or technology transfer, it is important for the parties involved to perform a diligence investigation. A client in Sunnyvale, California had recently signed a letter of intent...
Hillari Selby (CFO/COO, The One Touch Solution, LLC)
HELP!! My company is developing a few apps for an upcoming product my partner is in the process of developing...we need a D&B number for placing our app on the stores...neither of us has had experience with D&B...does anyone know anything about this?? I have some...
Tatum CFO Blog (CFO, Tatum)
If you are considering mergers & acquisitions, there are four key steps to take. What are they? Find out below. Step 1: Define Your Goals & Success Factors If you are considering mergers & acquisitions, your first step should be to define your goals and...
Ernie Humphrey (VP, Educational Programs, Proformative)
This whitepaper focuses on offering practical advice in the arena of performing the due diligence necessary to ensure that you chose the finance and accounting system that is the best fit for your firm.
Simon Westbrook ( CFO, Aargo Inc.)
As a private company, there is no need or desire to publish financial statements and so third party vendors often use D&B to obtain credit reports. In the companies I have worked for we always had sufficient cash to pay our bills and made a point of paying one a month...
