Due Diligence Audit

A due diligence audit is a procedure for evaluating a company’s financial health and performance. It helps to understand the company's abilities, target audience, potential clients, and profit-making abilities. Generally, companies expect due diligence audit services to create an audit report during business mergers and acquisitions. It helps in decision-making by putting all risks and opportunities in front of you. Although due diligence audits can be required by law, they are most typically used in voluntary investigations.

Objectives of Due Diligence Audit

• To avoid a poor business arrangement
• Ensure that the deal meets investment or acquisition requirements
• To assess the risks and opportunities associated with a potential transaction
• To reduce the likelihood of unpleasant surprises after the transaction
• To investigate business matters as a prudent businessperson
• To verify all material facts concerning the business
• To verify that the company is what it claims to be
• To build trust between two independent parties

Benefits of Due Diligence Audit

• A due diligence audit improves a company's status.
• It aids in uncovering any hidden business information.
• It serves as a risk assessment tool for a company.
• It helps buyers to make well-informed decisions and avoid unpleasant surprises at the end of a transaction.
• It gives buyers the power of 'caveat emptor.' The purchaser can ensure that the item is defect-free and fit for purpose.
• It guarantees that purchasers get "what they pay for."

Types of Due Diligence Audit

Here is the most common type of due diligence audit in the UAE.

Financial Due Diligence

To authenticate a company's financial statements, Audit firms in Dubai, UAE, analyze transaction data, trade results, cash flow, and balance sheets. The goal of engaging financial due diligence auditors is to determine the company's financial risk and forecast. It also includes a company's future financial requirements

Commercial Due Diligence

Commercial due diligence can identify a wide range of commercial criteria, such as competitor analysis, target market research, customer feedback, service feedback, and any other information that the acquirer requires.

Operational Due Diligence

The non-financial factors of a company are examined during operational due diligence. Auditors in the UAE conduct due diligence audits to gain a better understanding of a company's operations, structure, internal processes and systems, management team performance evaluations, and HR processes.

Legal Due Diligence

Legal due diligence helps in the assessment of any legal risks associated with the company. It keeps track of any legal disputes it has, whether with local governments, competitors, or its staff.

Why choose us?

Reyson Badger provides one of the most successful Due Diligence Audit services in the UAE. We provide all types of due diligence audit services that can help you decide to merge or buy a company in Dubai and the UAE without any hassles.