Due Diligence Reports

Due Diligence Reports in UAE

Due diligence is an investigation or audit of a potential investment or product to confirm all facts, that might include the review of financial records. Due diligence refers to the research done before entering into an agreement or a financial transaction with another party.Investors perform due diligence before buying a security from a company. Due diligence can also refer to the investigation a seller performs on a buyer that might include whether the buyer has adequate resources to complete the purchase.

Due Diligence report in UAE begins with building a program to determine the business reason for securing, basic objective, and destinations. We will help you in identifying transaction related issues, establishing the true cost of a business transaction, and negotiating business during transactions.

Understanding Due Diligence

Due diligence became common practice (and a common term) in the U.S. with the passage of the Securities Act of 1933. Securities dealers and brokers became responsible for fully disclosing material information related to the instruments they were selling. Failing to disclose this information to potential investors made dealers and brokers liable for criminal prosecution. However, creators of the Act understood that requiring full disclosure left the securities dealers and brokers vulnerable to unfair prosecution if they did not disclose a material fact they did not possess or could not have known at the time of sale. As a means of protecting them, the Act included a legal defence that stated that as long as the dealers and brokers exercised "due diligence" when investigating companies whose equities they were selling, and fully disclosed their results to investors, they would not be held liable for information not discovered during the investigation.

Types of Due Diligence Reports in UAE

  • Financial DD
  • Commercial DD
  • Tax DD
  • Human Resources DD
  • Operational DD
  • Legal DD
  • Administrative DD
  • Asset DD
  • Intellectual Property DD

Steps of Due Diligence Process

  • Defining the scope and information required for Due Diligence
  • Obtaining preliminary information from the target company and analysing it
  • Understanding key transaction drivers
  • Reviewing policies and procedures and conducting interviews
  • Onsite assessment and detailed walkthrough
  • Validating findings with key management personnel through discussions
  • Analysis of key finding implications
  • Issuance of Due Diligence report

Our team here at HALSCA have experience in preparing Due Diligence report in UAE. Looking for Due Diligence services in Dubai, UAE? We provide the best financial and market due diligence report for all major business sectors in all around UAE.