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A due diligence report for an M&A transaction is a comprehensive document that provides a detailed analysis of the target company's financial, legal, operational, and strategic aspects.

This report is crucial when buying or selling a business as it helps the buyer verify important facts about the seller, such as contracts, finances, and customers.

The due diligence report is needed for several key reasons:

  1. Informed decision-making : It provides buyers with a thorough understanding of the target company, allowing them to make educated decisions and conclude the sale with confidence
  2. Risk assessment: The report helps identify potential risks, liabilities, and areas of concern that may affect the transaction's value or viability
  3. Valuation validation: It confirms or challenges the assumptions underlying the company's valuation, potentially strengthening or weakening its appeal
  4. Negotiation leverage: A robust due diligence report equips buyers with valuable information that can be used to negotiate better terms or adjust the deal structure
  5. Post-merger planning: The insights gained from the due diligence process can inform integration strategies and help maximize synergies after the deal closes

By conducting thorough due diligence and preparing a comprehensive report, buyers can minimize risks, validate their investment decisions, and increase the chances of a successful M&A transaction

Biyr’s Due Diligence Report Service

A detailed due diligence report for buying a business in an M&A transaction will include the following key components:

1)Executive Summary

  1. Purpose of the report
  2. Overview of key findings
  3. Recommendation on proceeding with the acquisition

2) Financial Analysis

  1. Financial statements (balance sheets, cash flow statements, profit & loss reports)
  2. Capital structure and valuation
  3. Financial projections and historical performance
  4. Analysis of revenue streams and profitability
  5. Working capital assessment
  6. Debt and liabilities review

3) Operational Overview

  1. Business model and core operations5
  2. Products or services offered
  3. Production processes and capacity
  4. Supply chain and procurement data
  5. Quality control measures
  6. Operational risks and inefficiencies

4) Market and Commercial Analysis

  1. Industry overview and market trends
  2. Competitive landscape
  3. Customer base and retention rates
  4. Sales and marketing strategies
  5. SWOT analysis

5) Legal and Regulatory Review

  1. Corporate structure and governance
  2. Material contracts and agreement
  3. Intellectual property (patents, trademarks, copyrights)
  4. Ongoing or potential litigation
  5. Regulatory compliance and permits

6) Human Resources Assessment

  1. Organizational structure
  2. Key personnel and management team
  3. Employment agreements and compensation plans
  4. Labor relations and potential disputes
  5. Company culture and employee satisfaction

7) IT and Technology Infrastructure

  1. Overview of IT systems and infrastructure
  2. Cybersecurity measures and data protection
  3. Software licenses and technology agreements
  4. IT integration challenges and opportunities

8) Tax Matters

  1. Tax compliance and filings for the past five years
  2. Outstanding tax liabilities or disputes
  3. Tax optimization opportunities
  4. Potential tax implications of the transaction

9) Real Estate and Physical Assets

  1. Overview of owned and leased properties
  2. Condition of facilities and equipment
  3. Environmental compliance and potential liabilities

10) Strategic Fit Analysis

  1. Synergies with the acquiring company
  2. Integration challenges and opportunities
  3. Post-acquisition growth potential

11) Risk Assessment

  1. Identification of key risks (financial, operational, legal, market-related)
  2. Mitigation strategies for identified risks

12) Appendices

  1. Supporting documentation and detailed analyses
  2. List of information sources and interviewees

Due Diligence Services Pricing

Blue Membership

AED 5500/-

  • Basic Due Diligence Services:
  • Financial
  • Legal
  • Tax
Silver Membership

AED 12,500/-

  • A Due Diligence Services including:
  • Financial
  • Legal
  • Tax
  • Operational
  • Assets
Gold Memership

AED 19,500/-

  • Detailed Due Diligence Services
  • Financial
  • Legal & Regulatory
  • Tax
  • Operational
  • Assets
  • Technology
  • Resources
  • Team Competency
  • Strategic Fitness
  • Risks
  • Mitigation

For these services, Biyr will be pleased to disicss your requirements and provide you receommendations to our preferred partner network:

  1. Marketing & Promotion Services
  2. Audit & Assurance Reports & Service
  3. Legal Services
  4. Other Financial Services

Contact Biyr for further details