Our Services

Need Help ?

Please feel free to contact us.
We will get back to you with
1-2 business days.
Or just call us now

  • connect@kennis.in

  • +91 22 4257 0100

Due Diligence requires you to perform an audit, review, or investigation to verify facts about a business. Due diligence is required for various business purposes such as mergers and acquisitions, strategic alliances, joint ventures, and equity investments.




Due diligence also benefits investors in the following ways:

  • It enables you to avoid issues that may emerge in the future by meeting specific legal requirements
  • It will allow you to better evaluate your target company, compare the limits of your competitors, and research data.
  • It enables you to verify any current risks, predict future threats, and learn about company-specific and industry-wide concerns.
  • It allows you to evaluate the balance sheet of other companies and negotiate a better deal.

How Can Due Diligence Help Your Business?

Due diligence is performed from both the seller’s and buyer’s perspectives. While the buyer investigates the seller’s financials, litigation, patents, and other pertinent information, the seller focuses on the buyer’s experience, financial capabilities to complete the deal, and ability to fulfil the assumed responsibilities. This will avoid frivolous litigation in future for both the buyer and seller.

A strategic alliance is an agreement between two organisations to collaborate on a mutually advantageous initiative while maintaining each company’s autonomy. A Due diligence helps both the potential partners understand each others strengths and weaknesses, financially or otherwise.

Examination of previous statements, comprehensive trial balances, general ledgers, current operational results, business plans, budgets, and expected financial information to help confirm the seller’s economic performance. The goal is to find unreported obligations, comprehend the target’s existing financial situation, and determine whether or not earnings are sustainable. These activities aid in determining a reasonable target valuation and justifying the acquisition price.
At the same time, analysis the target company’s systems and procedures helps uncover the business functions performance risks. Investors need to evaluate the performance of the target’s operational model, which includes sales, marketing, technology, supply chain, and manufacturing, to identify gaps and prospective areas for investment or development.

How Do Due Diligence Benefits Investors?

Due Diligence helps the Seller/Buyer secure a better deal about the proposed transaction. There are two ways to accomplish this. If a buyer is aware of the target’s flaws, he can get either bargain for a lower purchase price or better terms and conditions. Some of the advantages that it gives the investors are:

With proper due diligence, you can avoid many issues that may arise in future. It helps exceed specific legal requirements and demonstrates that anyone conducting a transaction has exercised care as the law requires. Due Diligence is an excellent way to meet the law’s standard.

With proper guidance, you can better understand the target company, research and compare the limits of competitors. This may help you optimise your future step and help you take the proper action and commotions necessary to make the right decision.

It allows you to learn about industry-wide and company-specific concerns, verify any ongoing risks, and predict future unexpected threats. For example, the customer may be unaware of certain dangers requiring confirmation via warranties. If the customer is unaware of specific hazards, certain guarantees or representations may not be necessary.

With due diligence, you get a clear idea of what you are yourself into from the beginning; you get to see the balance sheet of other companies and decide what to buy or sell or to get into this deal in the first place. It also helps you gain insight into how the company was functioning in the past and how they used to handle problems & manage all the necessary things. This helps in interpreting the debt-to-equity ratio.

By getting insight into the company & its working module, we can predict the future profit & loss. That way the company can tackle all the upcoming problems which can result in loss & make itself more profitable.

Why Kennis?

Kennis provides a wealth of transaction experience, having worked on various transactions from both sides of the table. Mergers and acquisitions, divestitures, management and leveraged buyouts, financings, restructurings, and business partnerships are all areas in which we have extensive experience and a diverse range of platforms that allow us to contribute value to our clients certainly.

Join to newsletter.

Curabitur ac leo nunc vestibulum.

Thank you for your message. It has been sent.
There was an error trying to send your message. Please try again later.

Continue Reading