Due diligence and investigation work

Due diligence is a term usually used for an investigation of a business or person prior to signing a contract.

Due diligence in the context of buying a business is the process through which a potential acquirer evaluates a target company or its assets for acquisition. However, it can be as important for a seller to be aware of the process and to carry out sufficient internal reviews to satisfy themselves that the conclusion of an external (potential buyer’s) investigation will have a positive outcome.

Due diligence investigations will usually cover all aspects of a target company’s operations including:

• financial matters;
• VAT, PAYE/NIC and income/corporation tax compliance;
• legal matters (contracts, agreements, patents/intellectual property rights etc);
• health & safety, insurance and related regulatory compliance;
• employment issues;
• commercial matters (covering market research, market positioning & segmentation, product longevity etc)

As accountants, we generally focus on financial reporting, VAT and income / corporation taxes. We can also offer assistance in relation to  the commercial aspects of due diligence and we can assist in locating other professionals to carry out reviews that fall outside our expertise.

If you need advice or would like to discuss how we might assist you, please do not hesitate to contact us.