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What are the uses of due diligence?

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Question added by sahar abbas , Accounting Supervisor , Caduceus lane
Date Posted: 2015/10/05
Jeremy Boyd
by Jeremy Boyd , Senior Business Development Manager , Squamish Nation (First Nations Indigenous Group)

During M&A projects, due diligence is used to confirm what is being bought - the assets, the business, the future prospects - and what risks and liabilities are being assumed. 

Nisha Joji Ponpanal
by Nisha Joji Ponpanal , Legal Officer , Bahrain Financial Harbour Holding company B.S.C. and Financial Centre Development Company B.S.C. (c)

Uses of Due Diligence

- to take an informed decision

-avoid legal implications and violations

- can prevent misrepresentations and frauds

- Maintain stability and longevity of business

Hamdi Adel Mohamed
by Hamdi Adel Mohamed , Financial Analysis Supervisor , BDO Consulting

Determining whether or not company accounts are consistent and evaluating the real situation of assets, liabilities and tax risks

 

Raisa Paul
by Raisa Paul , Freelance Researcher & Due Diligence Reporter , Self-employed

Due diligence is performed as it contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers.  It also benefits in ensuring proper analysis taking into consideration all costs, benefits, and risks.

Fatimah Alhussain
by Fatimah Alhussain , environmental engineering , Ramboll

evaluate potential liabilities associated with land quality, other environmental and H&S issues.

 

Environmental, health and safety risks may translate into financial and reputational liabilities

 

 EDD process  includes the following elements:

1.    Phase I

2.    Phase II

 

3.    Phase III

 

 

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