Generally, financial due diligence is necessary to investigate into the financial circumstances and various other related factors of the business. Financial due diligence includes but not limited with document reviews, conducting discussion and interviews with senior management staff, exploring insights within the key personnel, comparing historical data and analysis of financial indicators and their trends as well as the reporting of financial and tax risks together with the actual operational situation of the business.
Financial due diligence is very important exercise for mergers and acquisitions, when the parties of the contract reach initial agreement and the acquiring party is permitted through mutual agreement to conduct an investigation into both operational situation and long-run perspectives of the business.
Within the framework of the financial due diligence engagement Avenue Consulting Group experts and consultants ordinarily incorporate investigative measures directed against all relevant matters pertaining to merger and acquisition, various operations including data analysis and field surveys.
However, we use financial due diligence not only in the context of acquisitions or mergers, but also against joint ventures, when financing or other deals and transactions are planned to close. The work, our team initiates, mainly focuses on key people of the Company and its business activities as well as investigates relevant financial data. The ultimate goal we seek is to assist to the acquiring party in overcoming information asymmetries, and allowing the client to obtain a greater depth of understanding with regards to the business.