Due Diligence is a fancy term for a comprehensive audit process a business will go through if it is raising funds from investor, being sold to another business, entering a very important contract with a customer or supplier or preparing for an initial public offering. A business may also conduct its own due diligence perhaps into a company they have targeted for acquisition of with a supplier of their own. The due diligence process is about establishing that everything about a business is sound and any weaknesses discovered and known about. So, it makes sense for a company to be due diligence ready all the time because it simply means that everything is as it should be, is under control and management understand all parts of the company.
The 'audit', while financial is one respect, is much more than that. Not only will the FD need to understand the accounts inside out and what lies behind every balance sheet item but the MD, Sales, Technical, Operation, HR and any other Directors will need to show they are fully in control and their respective functions are water tight. So, the due diligence will be financial but also commercial and technical and will cover everything from the balance sheet though customer, supplier and personnel contracts to intellectual property and legal liabilities.
AMW Consulting has helped many companies prepare and easily pass through due diligence exercises and has conducted similar exercises into target businesses. We can help your business identify its weaknesses quickly and put pans and actions in place to meet the demands of the exercise. Conversely, we can help prepare a due diligence project for a target acquisition or potential customer or supplier.