When buying or selling a company it is essential to follow a structured due diligence process from reviewing fundamental financial performance to the current management of the business. Clive Hyman, MD of Hyman Capital Services offers tips and advice on the key issues to consider in a step-by-step guide
If you have a client buying another company – or perhaps one who is being bought – then it is essential that you help them through the due diligence process. It is far too easy to get carried away by the excitement of a deal and it is imperative that accountants guide businesses through the process and help them make the right decisions
Due diligence is both an art, based on experience and ‘feel’, and a science based on knowledge, facts and having a clear understanding. This is why professional help is so important.
Too many people skip the due diligence process because they believe it has already been covered. For example, a potential investor may assume that everything has been done by the sponsor or promoter of the investment. Sometimes this is the case, but, more often than not, it is not. So, buyer beware.
