Due Diligence is a kind of in-depth audit in relation to all the documentation of the different sectors of the company.
The process consists of studying, analyzing, and evaluating these documents. But what is the purpose of this work?
In practice, the result of Due Diligence generates a great impact on the company, positively influencing accounting and tax management strategies.
The analysis covers all areas of a company, such as accounting, finance, pensions, legal, real estate, and technology, among others.
The process is quite demanding, it acts as a true X-ray of the company, to investigate and obtain an accurate diagnosis of the management as a whole.
Due Diligence is carried out in stages that are previously organized. It is work carried out by consultants from companies specialized in the practice.
Why perform Due Diligence in the company?
Working as if it were a medical diagnosis, Due Diligence develops a complete report that shows how the real situation of a company.
This broad view allows you to view the business situation as a whole. It identifies failures and points where you need to improve in the short and long term.
A Due Diligence process is required when a company is in the process of selling, merging, or incorporating the business.
The entrepreneur who is selling their company, or even looking for investors, needs to be aware of the “health” of the company.
Applying this methodology, the entrepreneur aims to improve, optimize processes, and solve and prevent problems.
The great advantage of Due Diligence is precisely to predict and diagnose risk situations, which without the audit would not be noticed, and could trigger a major problem for the company.
Quality Due Diligence in a company: reasons to hire
1 – Positioning in the market is a point that is clarified, favoring assertive management and strategy from there.
2 – Projection into the future is another assertive point after the process. The measures and strategies will be applied based on a sustainable report of the current reality.
3 – Identifies competitors, enabling an action and marketing strategy that gives the company an advantage.
4 – In the context of the financial and accounting situation, the methodology promotes strategies in order to avoid recurring financial problems or major failures.
5 – It also detects the main risks related to the business. That is, it gives a sense of the probability of change and success.
6 – A complete and specialized consultancy in the Due Diligence process is an essential part of a company to continue obtaining profits and expansion in its business.
Brasco Entreprises consultancy is your best choice in the Due Diligence process for companies in Brazil!
Our company offers tailor-made services to help foreign investors invest in businesses in Brazil and other emerging markets in an assertive and highly profitable manner.
In addition to solutions adapted to local circumstances, we offer advice on starting a business, feasibility analysis, compliance, merger, acquisitions, and Due Diligence, among other services in the business world.
To find out more, contact us!