What is business due diligence?

Business due diligence is the comprehensive investigation of a company before acquisition. It involves examining: - Financial records - Operations - Legal compliance - Customer contracts - Employee matters - Market position Due diligence helps buyers identify risks, validate seller claims, make informed decisions, and negotiate appropriate deal terms.

How do I choose a due diligence provider?

Evaluate providers based on these criteria: 1. **Industry Expertise** - Experience in your target company's sector 2. **Service Offerings** - Types of due diligence offered (financial, operational, legal, technical) 3. **Deal Size Experience** - Similar transaction sizes handled 4. **Turnaround Time** - Ability to meet your timeline 5. **Team Credentials** - Certifications and qualifications 6. **Reporting Quality** - Depth and clarity of reports 7. **References** - Past clients from similar engagements 8. **Technology** - Tools and systems used for analysis

What types of due diligence services are available?

Common types of due diligence include: - **Financial Due Diligence** - Quality of Earnings (QoE) analysis - **Operational Due Diligence** - Business processes and efficiency - **Commercial Due Diligence** - Market analysis and competitive positioning - **Legal Due Diligence** - Contracts, litigation, and compliance - **Tax Due Diligence** - Tax liabilities and structures - **IT/Technology Due Diligence** - Systems and infrastructure - **Environmental Due Diligence** - Environmental risks and compliance - **HR/Cultural Due Diligence** - Workforce and organizational culture Many providers offer comprehensive packages or specialized focused reviews.