WHY IS DUE DILIGENCE AN EXTREMELY VALUABLE AND PRACTICAL TOOL FOR DECISION-MAKING?
A careful insight into the target company is an important guarantee for a successful investment and future returns. The purpose of due diligence is a detailed analysis of the company’s operations and an assessment of business risks. The results of a due diligence help to disclose the company’s potential and business valuation, therefore assess the financial condition of the prospective business.
DESCRIPTION OF KEY DUE DILIGENCE ACTIVITIES
The precise and detailed planning of all activities is an imperative for successful due diligence process. MPC Consulting carries out a business and financial, legal and organizational due diligence of a target company in the following steps:
1. MPC Consulting and the client agree on the scope and content of due diligence services and the final report.
2. MPC Consulting prepares the list of documentation which have to be prepared from the the target company in an electronic and / or physical form, depending on the availability of the documentation (i.e., the data room).
3. Providers of due diligence review the documentation of the target company and make some interviews with a company’s management and owners.
4. A report on the performed due diligence is prepared for the client.