When establishing a business relationship with a client and also on an ongoing basis, we are required to apply appropriate Due Diligence measures on the business relationship.
Our due diligence services in various categories include
Legal due diligence seeks to examine the legal basis of a transaction, for example to ensure that a target business holds or can exercise the intellectual property rights that are crucial to the future success of the company. Other areas that would most likely be explored include legal structure, contracts, loans, property, employment, pending litigation etc.
Financial due diligence focuses on verifying the financial information provided and to assess the underlying performance of the business. This would be expected to consider areas such as earnings, assets, liabilities, cash flow, debt, management etc.
Commercial due diligence considers the market in which a business sits, for example involving conversations with customers, an assessment of competitors and a fuller analysis of the assumptions that lie behind the business plan. All of this is intended to determine whether the business plan stands up to the realities of the market.
Every Business has an obligation under the Prevention of Money Laundering & Terrorist Financing Regulations to ensure that we “Know Our Client” in order to protect ourselves in the event that any of our clients should use a global business structure for the purposes of money laundering, drug dealing, terrorist financing or any other illegal activity.