Company Due Diligence
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According to the Association of Certified Fraud Examiners, more than $3.5 Trillion is lost by businesses to frauds.
You can check for (not exhaustive):
- Non-compliance to anti-money laundering
- Fraud, embezzlement and financial irregularities
- Corrupt and inhumane business practices including Foreign Corrupt Practices Act, OECD Anti-Bribery Convention and Bribery Act
- Undesirable liabilities
- Hidden political links
- Terrorism links
- Counterfeiting and Intellectual Property infringement
- Conflicts of interest
- Analysis of business relationships
This calls for a thorough due diligence by Avvanz especially on companies who are going to be your :
- Potential business partners
- Potential Joint-Venture, Merger or Acquisition companies
- Vendors or Sub-Contractors
- Investment targets – Pre-investment and Post-investment due diligence
- Investors or Funding companies
- Customers (KYC – Know Your Customer)
- Channel partners including distributors, resellers and sales agents
What is Company
Due Diligence or CDD?
Company due diligence or CDD is the process of conducting a comprehensive review and analysis of a company’s operations, financial health, management structure, legal standing, and other important factors.
The purpose of CDD is to gather information and assess the risks and opportunities associated with a potential business transaction, such as a merger, acquisition, partnership, or investment.
The findings from the due diligence process are used to evaluate the target company’s financial and operational performance, identify any potential risks or liabilities, and determine the overall value of the company. This information is critical in making informed business decisions and negotiating the terms of the transaction.
Overall, CDD is an essential part of any business transaction, as it provides the necessary information to assess the risks and opportunities associated with a potential investment or partnership.
The purpose of CDD is to gather information and assess the risks and opportunities associated with a potential business transaction, such as a merger, acquisition, partnership, or investment.
The findings from the due diligence process are used to evaluate the target company’s financial and operational performance, identify any potential risks or liabilities, and determine the overall value of the company. This information is critical in making informed business decisions and negotiating the terms of the transaction.
Overall, CDD is an essential part of any business transaction, as it provides the necessary information to assess the risks and opportunities associated with a potential investment or partnership.
Why do Company Due Diligence?
Protecting investments
CDD can help companies ensure that they are making a sound investment by verifying the accuracy of the information provided by the target company, assessing the target company’s financial health and stability, and evaluating the target company’s management team and overall business strategy.
Mitigating risks
Conducting CDD can help companies identify potential risks associated with a particular business opportunity, such as legal, financial, or reputational risks. This information can help companies make informed decisions about whether to pursue the opportunity and how to mitigate any identified risks.
Maintaining reputation
Conducting CDD can help companies protect their reputation by identifying any potential issues with the target company’s ethical practices, environmental impact, or other factors that could reflect poorly on the company.
Meeting regulatory requirements
In some cases, companies may be required by law to conduct due diligence on potential business partners, vendors, or suppliers to ensure compliance with regulatory requirements.
Overall, CDD is an important part of making informed business decisions and protecting a company’s interests. It helps companies ensure that they are making sound investments, meeting regulatory requirements, and safeguarding their reputation.
How can Avvanz help?
Avvanz can conduct CDD by leveraging its expertise in research, analysis, and risk assessment. This is the methodology undertaken by Avvanz in CDD:
Collect information
Avvanz can use a variety of sources to collect information about the target company, such as public records, financial reports, regulatory filings, news articles, and industry reports. We may also conduct interviews with key stakeholders, including executives, employees, customers, and suppliers.
Define the scope
The first step in conducting CDD is to define the scope of the investigation. This includes identifying the areas of the target company’s operations that require examination, such as financial performance, legal standing, regulatory compliance, and reputation.
Prepare a report
The results of the investigation are then compiled into a report, which may include an executive summary, detailed findings, and recommendations for action. The report is typically presented to the client, who can use the information to make informed decisions about the potential business transaction.
Analyze the information
Once the information is collected, Avvanz can analyze the data to identify any potential risks or issues associated with the target company. They may use a variety of tools and techniques to conduct their analysis, such as financial modeling, risk assessment, and benchmarking.
Overall, Avvanz can leverage our expertise in research and analysis to conduct comprehensive company due diligence, helping clients make informed decisions about potential business opportunities while mitigating risks and ensuring regulatory compliance.
Avvanz prides in our e-Platform called CDDGlobal which enables you to easily select and order Basic, Standard and Advanced CDD solutions across the globe.
Should you need more information, feel free to contact Avvanz at consult@avvanz.com
Should you need more information, feel free to contact Avvanz at consult@avvanz.com
