Due diligence services is a comprehensive procedure that looks into many different facets of a company, including key personnel, agreements, financial statements, and accounting records. The five main categories of an organisation’s components that are subject to due diligence are – financial performance, legal compliance, operations, environmental impact, and commercial performance.
Due diligence is typically customised for unique needs of each business since there are no set standards for what should be included in the process. Certain industries place greater importance on specific types of due diligence that rely on
- The type of transaction
- The apparent degree of danger
- The requirements and interests of the buying or investing company
How Does the Due Diligence Process Work in the UAE?
Categories | Meaning |
Commercial Due Diligence | Commercial due diligence includes a thorough examination of several business aspects, such as market circumstances, product or service evaluations, competitive analysis, and any other relevant commercial data deemed crucial. |
Financial Due Diligence | Financial due diligence requires a detailed review of a company’s past financial records, including cash flow statements, trade outcomes, and balance sheets. It also includes an assessment of the anticipated performance and funding. |
Legal Due Diligence | Finding any potential risks to the rights and obligations of the target company is the primary goal of legal due diligence. This could involve items like real estate ownership, intellectual property, and workplace legal disputes. |
Operational Due Diligence | Operational due diligence is the assessment of a company’s non-financial aspects such as review of system and process assessments, management team’s competencies, risk assessment, insurance coverage, and human resources operations. |
Environmental Due Diligence | Environmental due diligence is conducted to see whether the business conforms with environmental laws and regulations. |
People Due Diligence | People’s due diligence involves evaluation of the existing organisational structure and any potential new structures that might emerge in the event that the transaction is successful. It also covers the assessment of employment agreements, termination costs (if any), and potential benefits for employees. |
How Can VAT Accounting Help You?
VAT Accounting offers due diligence service in Dubai in addition to an extensive range of services, which include auditing, accounting, management consulting, state-of-the-art accounting software solutions, and expert tax advice. We have established ourselves as a renowned and top-notch audit service throughout Dubai and the UAE.
Our due diligence audit services in Dubai are intended to provide you with a comprehensive understanding of your business transactions. Getting an accurate due diligence report gives you a powerful instrument for risk assessment, which in turn gives your organisation more authority and enhances your reputation. To ensure you get the most out of any proposed transaction, we are dedicated to assisting our clients with a variety of due diligence procedures.
Contact VAT Accounting for all of your services related to due diligence in Dubai. We are available to support you as you pursue success.
FAQ's
Apart from people, performance, philosophy, and process, passion, progress, perspective, and purpose are the four essential factors in due diligence.
SWOT analysis is a popular method used in due diligence, which stands for Strength, Weakness, Opportunity, and Threat. This helps identify critical areas for improvement for businesses.
A risk-based approach is used to determine the scope of due diligence conducted.