Due Diligence

Due diligence involves the exchange, review, and assessment of crucial information by interested parties in a business transaction, ensuring confidentiality and evaluating legal, financial, and other relevant factors. We identify the red flags in deals at the prospecting stage and assess the risk element in a business transaction to make sure that the parties to the transaction have the required information they need, to proceed with the transaction or to withdraw their interest from the deal. The objective of conducting a due diligence is to identify problems within the business, particularly those matters which may give rise to unexpected liabilities in the future.

due deligence

How will Markwart help you with your pre-deal due diligence?

Our professionals with their deal expertise with an understanding of the unique business needs of every industry, are here to assist you to make that challenging decision of acquiring or investing in a business by running financial, litigation, compliance and reputational due diligence checks on potential investment targets to mitigate huge potential profit failures and to handhold you through the deal preventing huge dents on the brand value. Simply, we focus on two things; selecting the right opportunities for you, and avoiding surprises. We design a robust due diligence program to identify the potential risks in engaging a specific third-party. We provide independent, rigorous fact-based analysis regarding a value propositions’ most pressing financial, commercial and operational issues. Based on our due diligence reports, a company may decline to engage the third-party or design and implement a number of risk mitigation strategies. Our holistic analysis is churned out into info graphical reports transforming mundane information into actionable insights and mitigation strategies so that you don’t miss out on nuanced detail. Our audit involves the examination of the company evaluating its standing as a business, and its financial performance through a microscopic lens. Our expertise lies in assisting clients in conducting comprehensive evaluations of companies, considering their capabilities, potential, track record, performance, and reputation, enabling informed assessments. We assist our client, being a potential investor, to gain a greater understanding about the businesses prospective, earning capabilities, the competency of management, assets and liabilities they have, as well as their financial position.

How Our Due Diligence Expertise can be the differentiating factor for you?

Potential Reputational Risks

A company does not want to “do business with” or “associate” with another person, entity or company that itself has a poor reputation or engages in other types of misconduct. Consider the following scenario; A company’s reputation for ethical business practices can suffer real and substantial harm when it engages with companies that relies on child labour or violates environmental laws or engages in illegal anti-competitive activities. Such business practices threaten a company’s significant asset – its goodwill. This is where due diligence comes in and ensures that the entities with which the company interacts has a comparable commitment to ethics and integrity.

Potential Legal Risks

A company or a potential investor creates significant risk and unexpected liabilities in the future if the business in which they want to invest are companies that flagrantly skirt the law or regulatory norms. One will often rely on robust due diligence to unearth any potential tax, legal or labour law related liabilities and future obligations which may arise and lead to litigations after the takeover/ merger/joint collaboration or investment in the business. We review past insurance and risk assessments, ongoing litigations, potential legal risks, Intellectual Property Rights (IPR) disputes and ownership and employee disputes through our legal and operational due diligence.

Financial Capabilities and Business Potential

Financial sheets of the organisation are thoroughly inspected for any discrepancies in cash flow, revenue and investor stakes through our financial due diligence. We identify and analyse revenue funnels, potential growth factors, and review Performance forecasts and investment requirements to deliver the independent validation required to make investment decisions confidently.


Commercial Due Diligence

Within each opportunity, we focus on value creation by using a well-honed strategic due diligence process to review the market dynamics, aligning the customer’s perspective, assessing the competitive position, auditing operations and existing cost and revenue synergies, reviewing the business plan, analysing in-depth the vendor’s pertinent information such as contracts, customers, etc, opportunities for outperformance, analysing key downside risks and designing a go-forward value enhancement strategy.

With our unique approach, we expedite processes, enhance value, and mitigate investment risks, ensuring well-structured ownership and a smooth exit strategy for successful acquisitions.