Due Diligence is a term which is generally used for the investigation of business. It is similar to audit but it is number of concepts like in business acquisition, Management audit, Macro-environment audit, business consultancy etc. In India, Due Diligence reviews have different forms for different services. Due diligence services are divided into three parts: - financial due diligence, commercial due diligence and corporate due diligence. Sometimes Due Diligence Review also used for investigation of transactions or business prior signing a contract or any standard of care contract. It considers material matters for future to eliminate the failures causes. Following are common areas where due diligence reviews are required i.e. for Legal environment, Management, Financial Reports, Acquisition, Compatibility, Granting Loans for Projects or Marketing etc. We can enlarge the service of due diligence under the following domains: - direct and indirect tax, environmental, social, pensions, legal, corporate finance, IT, post-merger integration, commercial, operational, valuation and tax due diligence. Basically Due diligence is a way of preventing unnecessary harm to either party involved in a transaction.
Accounting Forte uses the process of due diligence through which a potential acquirer evaluates a target company or its assets for an acquisition. Our team of expert consultants are working in this field to meet the needs of private equity houses, banks and corporate acquires for authoritative due diligence and investigation services. It is much broader than audit and is business oriented rather than accounting oriented. It should be borne in mind that a DDR requires skills that go beyond conventional audit. An understanding of the business, the pattern and trends in the business line, forecast of the environment and estimation of risk – all these are called for from the firm conducting the Review.