Due diligence: risks and opportunities for synergy

There are many strategies that can contribute to the positive maintenance of a company’s accounts. The main one concerns the coherence that its economic information presents, both internally as a use by its administration and externally, creating a strong and consolidated image for the public and other companies in its field.

For example, it is extremely necessary for the manager to have an in-depth knowledge of the actual financial condition of the company in order to better deal with administrative situations of purchase and sale. In this sense, an excellent way to check the progress of a company’s management is to conduct a detailed conference of the company’s financial information, through services such as due diligence.

But, after all, what is due diligence?

The practice of due diligence is characterized by the urgency of care required during the synergetic process that the association between two companies demands. In the due diligence process, the company that goes through the analysis, called target company, has verified information more strongly than in an audit process, amplifying the specifics of the points examined.

Tudo sobre a LGPD - Lei de proteção aos Dados do Brasil
Tudo sobre a LGPD - Lei de proteção aos Dados do Brasil

What makes due diligence different?

During the due diligence process, risk factors that must be known before any merger or acquisition acts take place in the company’s data analysis equation. These factors concern the control of dividends in relation to the cash inflow, the company’s tax liabilities and will be directly related to the final intention of the parties to the business.

A buyer can assess, from the financial projection revealed by due diligence, the best way to structure their acquisition, from a more detailed notion of the economic prospect of the target company, opting for a coalition or an incorporation, for example. However, the due diligence process is advised even on the grounds of internal verification that the company may request, whether or not it has a prior intention to open the capital or a sale.

In the case of purchase or sale, the investigative diligence, therefore, is an ally in the transparency and science of the real financial and administrative conditions of the firm. Through this scenario it is possible to study the actions necessary to improve the company’s administrative processes and also prepare the interested parties in case of a merger or acquisition indicative.

With what propose and how to request a due diligence?

It is very important, in every major decision of an administration, to hear the voice of the experts on the subject. The merger and acquisition processes, because its complexity, require the company interested in buying or selling a business to seek technical advice in accounting firms. Even if the case is judicial recovery, the target company manager will need a due diligence to help the business to restructure.

A company specializing in the provision of advisory and consulting services, such as the Maciel Group, will be prepared to better analyze the viability of the business and, mainly, advise on the best way to act in a negotiation. The due diligence service is therefore advised for companies that are in the process of merger and acquisition or thinking about opening up their capital to the financial market.

The investigative due diligence of the Maciel Group

Maciel Group works to search for the most varied needs involving the business of its clients. Among these services is the investigative due diligence, which aims to analyze in detail the financial aspects of the target company, with the purpose of offering better advice related to the intentions of the manager.

Maciel Group auditors are prepared to provide a personalized and specific response to particular situations in each business. This enables companies to offer solutions designed for their demands, identifying problems and anticipating resolution actions.

Through preventive actions, stakeholders in business will be prepared to make a decision based on the transparency of the economic situation of the target company. Thus, if the company is planning to acquire or sell its business, for whatever purpose – merger, acquisition or IPO, for example – you will find a response tailored to your interests at the Maciel Group.

How and where can the company apply for the due diligence services of the Maciel Group?

Grupo Maciel is an audit, advisory, consulting and forensic accounting company, operating in the market for almost a decade. To better represent the interests of its clients, the Group’s auditors are present throughout the country, with offices in Rio de Janeiro (RJ), Porto Alegre (RS), Brasília (DF), Curitiba (PR) and Belo Horizonte (MG), besides the headquarters in the city of São Paulo (SP).

Companies can request a budget by accessing the contact tab and selecting the budget option, as well as through the service channels, via phone, through the option contact us on the same tab, or via e-mail, forwarding a message to [email protected]

Good consulting can be the key to getting the best deal. To promote this, Maciel Group works to serve the interests of its clients and guide them in the actions necessary to ensure that their business is in accordance with the information conferred by the target company.

Due diligence, Due diligence: risks and opportunities for synergy, Russell Bedford do Brasil

CEO Maciel Group

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