In Singapore, there are plenty of small deals that take place with cursory due diligence, without going in depth into key areas. One of the areas that are often glossed over is that of commercial due diligence. While data on businesses and industries in Singapore is readily available and clean, there remains many target companies which will deliver a story reminiscent of the dot-com era where commercial projections are taken way above realistic figures. Singapore is home to quite a few digital platform giants, including Grab and Garena brands like Secretlabs and Razer. Following their trajectory in terms of projection is often the norm, but upon due diligence process being carried out, it is often the case that such assumptions are challenged. This often results in a marring of a relationship between the buyer and seller right from the start.
Is this common practice everywhere?