Top Due Diligence Services Consultants in Dubai, UAE

Top Due Diligence Services Consultants in Dubai, UAE

It is important for every business to properly study the pros and cons of various deals or contracts that they enter into daily. Hence, all the details need to be studied carefully. Given the complexity of the task, it is helpful to hire a qualified consultant. Check out the services of the best due diligence consultants in Dubai

  1. What is Due Diligence?

    As the name suggests, due diligence is the process of investigating and verifying that the information provided is correct. Similar to an audit which is performed after a transaction takes place, due diligence is the care you take before entering into a transaction. While the audit is backward-looking to check for any execution errors, due diligence is forward-looking and prevents errors and losses from occurring.

    Usually, due diligence is practiced in the case of Mergers & Acquisitions, Project Finance, Joint ventures, etc. One can even use due diligence to check the viability of an ongoing process. In simple words, due diligence is like homework that every business should do to prevent losses. You can easily find competent due diligence services in Dubai.

  2. Importance of Due Diligence

    So, what is the purpose of using due diligence? Here are some of its most important uses:

    • Verifying the correctness of Information: Before striking a deal or entering into a contract, it is very important to check the correctness of the information provided. No one can analyze wrong information to get correct results.
      Due diligence can be performed by experienced due diligence services in UAE. It involves checking all the key points of the deal, referring to previous experiences, checking whether your goals are compatible with the deal, etc.
    • Identifying potential losses: If you truly want to see a clear picture of how a deal will benefit your organization, it is essential to read between the lines. A due diligence consultant in Dubai would compile all possible losses involved in the opportunity and provide clarity on the outcome.
    • Identifying the true benefit of the opportunity: Why do projections fail? Because one doesn’t consider all the variables before entering into a deal or contract. By weighing all the opportunities and costs, one can arrive at the true value of the opportunity. You can solicit experienced due diligence services in Dubai to carry out this study for you.
    • To check the compatibility and feasibility of an opportunity: Sometimes it is essential to look beyond the horizon to see the true potential and feasibility of an opportunity. What is visible prima facie might be misleading. Hence, it is better to get a due diligence service in UAE and study the feasibility of a project well in advance.
    • Increases the Chances of Success: As the saying goes, “hope for the best and be prepared for the worst”. Performing proper due diligence allows you to be prepared for unforeseen situations. It certainly increases the chances of success in your endeavors.
    • Enhanced quality of Information available: Having the correct information is a boon for the management. By studying all the variables involved in a deal, the quality of information available for decision-making gets enhanced.
    • Informed Decisions: A management that has refined and accurate information is well-equipped to make the correct business decisions. By appointing due diligence consultant in Dubai, the management can be certain about getting all the information needed to make the right decisions.
    • Negotiating Better Deals: A business’s biggest concern is entering into fruitful deals. Being well-informed empowers the management to negotiate better deals to help the business grow.
  3. Elements of Due Diligence

    What is the due diligence process? Here’s how due diligence consultants in Dubai would carry out their studies:

    • Study all the Variables: The first step is to follow the process of due diligence and check all the variables of a deal as per the due diligence checklist.
    • Identify the Associated Risks: By studying the opportunity, one can identify all the potential risks and gains associated with a deal. Experienced firms like Aviaan Accounting that provide due diligence services in Dubai can comprehensively study these details and accurately identify all the risks.
    • Reporting of the Information Collected: Once the study is complete, the next step is to provide an informational and meaningful report to the management. The report also contains suggestions for management that can help to minimize risks.
    • Minimize the Chances of Risk: In the fourth stage, the management takes necessary actions as per the suggestions in the report. By following the suggestions, the business can minimize the chances of risk.
  4. Types of Due Diligence
    Now you would ask how many types of due diligence are needed by a business. Let’s take an example of due diligence for Mergers & Acquisitions. Here are the processes that due diligence services available in Dubai, UAE would normally follow.

    1. Administrative Due Diligence:In administrative due diligence, a consultant checks the operations thoroughly. Here are the key questions that they answer:
      • What is the operational capacity of the business? 
      • How much of the potential capacity is actually being utilized? 
      • What are the operational costs involved?
      • Is the operational planning being executed?
      • What are the operational risks and concerns of the business?
      • What are the checks and balances to ensure smooth operations?
    2. Financial Due Diligence: Similar to a financial audit, a due diligence consultant checks the financials of the company. Here is the list of items that are thoroughly checked under financial due diligence.
      • Key financial indicators
      • Financial Statements
      • Budgets and Estimates
      • Business Ratios
      • Future Projections
      • Short-Term and Long-Term Debts
      • Working Capital Requirements
      • Inventory
      • Debtors & Creditors
      • Inventory and Debtors Aging
      • Costs and Profit Analysis
      • Internal Controls procedures to eliminate the risk of Errors


    3. Asset Due Diligence: Under asset due diligence, a consultant looks for:
      • The records of all the fixed assets owned by the company
      • Physical verification is also conducted at the sites where these assets are installed
      • If an asset is taken on lease, the elements of the lease agreement are also checked thoroughly
      • The title of the assets, mortgages, and sale or purchase deeds of the assets are also checked
      • Insurance Policies of the machinery, plant, and equipment are checked


    4. Human Resources Due Diligence: As the name suggests, HR due diligence includes studying the working conditions of the employees.
      • Total Number of Employees and their Current Positions
      • Employee Contracts along with the Non-disclosure & Non-competition agreements
      • Salaries, bonuses, and other employee compensations
      • Leave policies, leave encashment, Leave Travel Concession, etc.
      • Termination policies, discrimination or harassment record of employees
      • Labour Disputes, cases, and arbitrations pending
      • ESOPs, employees’ insurance, health and welfare policies, etc.


    5. Environmental Due Diligence: Businesses need to follow a lot of environmental regulations that help protect the environment. Here’s what a consultant would see:
      • Whether the company violates any major environmental law?
      • Does the business hold all the environmental licenses and approvals?
      • Check the records of carbon emissions and environmental liabilities, if any


    6. Taxes Due Diligence: A due diligence consultant will check the following details:
      • Whether all taxes are properly calculated?
      • Are there any pending dues and litigations for tax dues?
      • Whether the tax returns are regularly filed?
      • Is there any irregularity or under-reporting of taxes
      • Carried Forward Income tax Losses
      • Input Tax Credit


    7. Intellectual Property Due Diligence: The products of a business can be differentiated from their competitors using Intellectual Property Rights. Here’s what a due diligence consultant will check
      • All the registered Patents, Trademarks, Copyrights, and brand names
      • Pending patent applications and documents
      • IPR Claims against the company if any


    8. Legal Due Diligence: A business is a legal entity. Hence, it is essential to check all the key legal documents of a business:
      • Memorandum of Association
      • Articles of Association
      • Minutes of Board and General Meetings
      • Documents related to the Top Management Personnel
      • Loan Guarantees given by the business
      • Agreements related to partnerships, Joint Ventures, AMCs, etc.
      • Agreements related to franchises, finance, line of credit, bank loans, etc.
  5. Advantages of Due Diligence:

    Here’s how you can benefit by availing of due diligence services in Dubai, UAE

    • Negotiate Better Deals: Due diligence provides correct information to the management which helps them to negotiate better business deals.
    • Increases the Success Rate: A more informed management is well-equipped to make better decisions. It can help in increasing the success rate.
    • Transparent Processes: With due diligence, businesses can ensure that all the processes are transparent and losses are minimum.
    • Check the Project Feasibility: Due diligence helps a business to assess the feasibility of an opportunity and be prepared for the potential risks well in advance.
    • Rectify Unforeseen Problems: Due diligence helps the management to look beyond what is visible in plain sight and analyze an opportunity to its core.
    • Reduce Risks: Once a business is aware of the risks, appropriate measures and negotiations can be taken to reduce the risks.
  6. Aviaan Accounting – Top Due Diligence Services in Dubai, UAE

We are a team of highly experienced professionals who are determined to deliver quality due diligence services in Dubai, UAE. Having assisted numerous organizations in conducting market research, we have an extensive experience in the same. Our market research reports are detailed, accurate, and comprehensive. We ensure that you do not miss out on any vital information for your business and are always on time. 

To avail of our services, visit us at Aviaan Accounting and get your market study done now! 

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