A due diligence audit involves the assessment of an organization, in order to determine its financial performance. It helps one to gain a greater understanding of the business earning capabilities, the competency of the management, the prospective customers, and suppliers, as well as their financial position.
In general, a due diligence investigation is used by an individual or firm that is willing to do any business with a company. The overall objective of a due diligence audit to help the client in evaluating the history, performance, ability, and goodwill of the organization.
Types of Due Diligence
Financial Due
Diligence
Financial due diligence is a review of historical data, including trade results, cash flow and balance sheet of a company to know its financial position. It also includes a review of forecast performance and funding requirements.
Commercial Due Diligence
Commercial due diligence is conducted to examine various commercial factors, including market conditions, competitor analysis, product or service assessment, and any other commercial data the user wishes to investigate.
Operational Due Diligence
Operational due diligence considers the review of non-financial matters of a business, which may include insurance and risk assessment, HR activities, review of systems and processes, evaluation of management team.
Legal Due Diligence
Legal due diligence includes the investigation of any legal risk associated with the rights and obligation of the target company. The issues may involve intellectual property, employment disputes, and property ownership.
Key Benefits of Due Diligence Audit
- A due diligence report acts as a risk assessment tool for an organization
- It helps to discover any hidden information about the company
- It improves a company’s reputation
Ogedengbe Blessing & CO Due Diligence Services in Nigeria
We provide the following due diligence services to our clients:
- Recognizing and quantifying deal-specific risks of the entity
- Helping to identify hidden costs, contingencies, and commitments of the company
- Finding the issues which are likely to affect the purchase price or contract conditions
Why Ogedengbe Blessing & CO?
Ogedengbe Blessing & CO is a financial consultancy firm in Nigeria, offering a wide range of services including accounting, auditing, software consultancy, and management. We have been providing the best audit services in Nigeria. At Ogedengbe Blessing & CO, we assist our clients to perform all type of due diligence in order to maximize the value from a proposed transaction.
For any due diligence services in Nigeria, contact us – we’d be glad to help.
FAQs
How long does your due diligence take?
A due diligence shouldn’t take more than 60 days.