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Due Diligence - A Critical Examination Before Entering a Proposed Transaction

Due diligence is the minute investigation of any potential investment in a company or stock. It is recommended for venture capital funding, mergers and acquisitions, debt finance, and long-term supply contracts.<br><br>https://www.slideshare.net/RoseMarry27/due-diligence-a-critical-examination-before-entering-a-proposed-transaction-profilepdf<br><br>Due diligence<br><br>

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Due Diligence - A Critical Examination Before Entering a Proposed Transaction

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  1. WAHT IS DUE DILIGENCE ? Due diligence is the minute investigation of any potential investment in a company or stock. It is recommended for venture capital funding, mergers and acquisitions, debt finance, and long-term supply contracts. Due diligence involves complete review of the company’s past performance, financial records, debts, and legal entanglements, if any. Moreover, it includes any other factor that could influence the company’s market value or future performance. Many individual investors perform due diligence before investing in a stock.

  2. COMMERCIAL DUE DILIGENCE Commercial due diligence focuses on the company’s position in the market. It includes analyzing the company’s market position, market share, growth drivers, and opportunities. The main objective of commercial due diligence is to estimate the company’s future prospects and sales forecast.

  3. LEGAL DUE DILIGENCE Legal due diligence ensures that the target company has all its contracts, ownership details, compliance, other legal aspects in place. The main objective is to confirm the validity of rights the purchaser is acquiring and absence of any potential legal risks later.

  4. FINANCIAL DUE DILIGENCE Financial due diligence involves reviewing the potential company's financial history which helps the investor to confirm the valuation. It also includes identifying any financial uncertainty or exposure which could cause additional costs or disruptions to business in future

  5. TAX DUE DILIGENCE Tax due diligence is a part of financial due diligence which entails reviewing the company’s tax liabilities resulting from any non- compliance or errors.

  6. THANK YOU ! Harveen Gandhi Sales Email US : harveen.gandhi@aranca.com Website : www.aranca.com

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