In today’s complex business and financial environment, it is increasingly important for investors and buyers to insist on a thorough due diligence before making the final move. Due diligence is the careful, thorough evaluation of a potential investment, whether on a corporate or individual level. It is the process of evaluating a business situation from all aspects before making a decision. Due diligence is performed to protect both parties in uncovering potential liabilities and financial matters, to make sure nothing is hidden. In this exposition, due diligence is referred to specific survey.
There are multiple types of due diligence that provide businesses with the confidence and knowledge to get exactly what they want out of a prospective deal, such as commercial due diligence, financial due diligence, legal due diligence and credit due diligence, etc. Under the Common Reporting Standard (CRS), the financial institutions are required to report the different types of accounts and taxpayers covered and follow the common due diligence procedures.
I. Common Types of Due Diligence
Due diligence is an extensive process to completely understand a business capability and its performance. It is a program of critical analysis that companies undertake prior to making business decisions in such areas as corporate mergers/acquisitions or major product purchases/sales. The main types of due diligence are:
Commercial Due Diligence;
Legal Due Diligence;
Financial Due Diligence;
Tax Due Diligence;
Credit Due Diligence;
Asset Due Diligence;
Background Survey;
Market Due Diligence.
II. Significance of Due Diligence
Too often due diligence is incorrectly seen as a bother or hindrance or something that must be endured. This misconception ignores the golden opportunity that a corporate due diligence process actually presents. Due diligence is not a general investigation but it includes specific elements which may vary based on the situation. Simply speaking, due diligence is the process of gaining knowledge to empower a business to make smart choices.
III. Required Materials
1. Relevant identity documents;
2. The purpose, target and approach of the due diligence;
3. The clues of the target, including writing materials, photos, recordings, contact information, etc.
4. Other information needed. (if any)
IV. Tannet’s Due Diligence Services
We execute due diligence audits and business analyses in accordance with your needs, and in an independent, personal and comprehensive manner. To that effect, we can draw on the knowledge of qualified experts from our different business areas (Corporate Finance, Legal Advice, Tax Advice, Assurance and Portfolio Management), as well as tried and tested partnerships with external experts. We would be delighted to discuss your specific due diligence project with you personally.
Contact Us
For more information about due diligence services, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu , Shenzhen, China.
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