- This topic has 16 replies, 17 voices, and was last updated 3 years ago by .
Viewing 8 posts - 1 through 8 (of 8 total)
Viewing 8 posts - 1 through 8 (of 8 total)
- You must be logged in to reply to this topic.
Why financial due diligence is important?
Financial due diligence provides valuable information to support a fair purchase price and ensures the appropriate warranties and representations are included in the purchase agreement. It also identifies the issues the purchaser and vendor should address to complete a successful transaction.
Financial DD is important because a company’s financials help a buyer determine whether a target is viable from both a financial and business standpoint.
In addition to what has been mentioned above by other participants, FDD is important for both buyer and seller as it will be the ground basis for the negotiation process or phase.
I would say FDD gives you an idea if the deal would add value to the buyer
Financial DD is one of the very first areas where buyers would like to investigate whether the financial numbers which have been presented are fair or not.
Financial due diligence is vital in mergers and acquisitions in that it offers the buying entity with an insight of the inner operations/workings of the target entity. The purchasing entity the financial position of the target firm, decipher the aspects not recorded in the financial statements as well as uncover such aspects as the unreported liabilities, potential risks, problematic contracts among other aspects. Other vital aspects that the buying firm will uncover include intellectual property issues, customer base as well as the target firm’s strategic fit to the purchasing company business line. Through this analysis, the buying firm can then determine whether or not to purchase the target and if they do so at which price.
When done properly, financial due diligence provides valuable information to support a fair purchase price and ensures the appropriate warranties and representations are included in the purchase agreement
Trainings
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
In order to become a charterholder you need to complete one of the IMAA programs