Andréa Sumé

The Due Diligence Boardroom

Due diligence is the procedure of vetting a company entity prior to entering into a business arrangement that involves a client, vendor, or third party. It is also an essential element of good governance. It requires that individuals and groups act in the same manner as any other reasonable person in similar circumstances.

It was once a given that when a company’s board of directors conducted due diligence, it required an entire team of auditors physically going to the office and spending days looking through file after file of financial documents and information. While there are still some cases where this is necessary most companies nowadays conduct their due diligence in an online data room (VDR).

The following are the main types of information needed in due diligence:

This includes all financial records, like tax records, audits and financial evaluations from external providers. This will include the cash flow forecasts, balance sheets, and much more.

The details of the products and services that a company offers, as well as any ongoing research and development projects. This can include a listing of patents, trademarks, and other intellectual property.

Buyers also want to know a company’s competitive edge and this can include information such as their customer base sales pipelines, their market reach, and more. This can be accomplished by analyzing a company’s existing data on these elements as well as conducting interviews with customers who are already in the company.

As an owner, you must be willing to disclose the information requested by potential buyers. However it’s not a matter of giving everything away, as it’s essential to protect your intellectual property. It’s usually recommended to create a staged access controls to ensure that only the most trusted partners have access your most sensitive information.

Deixe um comentário

O seu endereço de e-mail não será publicado. Campos obrigatórios são marcados com *

Rolar para cima