Due diligence in a business context refers to the comprehensive investigation and verification process that an organization or individual undertakes before entering into a significant business transaction or relationship. The purpose of due diligence is to thoroughly assess and mitigate potential risks, ensure the accuracy of information provided, and determine the true value and viability of the business, investment, or partnership.
Key aspects of the due diligence process revolve around financial reviews, operational assessments, and legal & regulatory compliances. The findings from the due diligence process are then used to inform the decision-making process and negotiate the terms of the transaction or partnership.
Methodology
AFMC’s consultants assist in promoting your understanding of the intended entity/project’s business, increase the potential of realizing the targeted objectives, and identify and understand the critical success factors to make informative investment decisions, determine the strengths and weaknesses, and identify the ideal options to handle them. Our due diligence methodology includes the following:
-
Understanding the requirements
related to the current and future conditions of the intended project
-
Historical Performance
as an important indicator to determine the extent of realizing long and short-term objectives.
-
Projected Performance
to promote confidence in the ability of the intended enterprise to realize the projections considering the KPIs.
-
Comprehensive Analysis
to identify the enterprise and the market’s Strengths, Weaknesses, Opportunities, and Threats (SWOT).