What is 'Due Diligence?'

When making a potential investment it is only sane and wise to review your finances and investments in order to achieve maximum business benefit and/or to reach your business goals. Doing so is a fair definition of what ‘Due Diligence’ is. Similarly, before entering into an agreement btw parties, conducting an internal audit of your assets/finances etc should be the way forward or ‘Due Diligence’.

However, in today’s financial world, there is a premium on high economic analysis when carrying out business deals – margins for errors are thinner, and stakeholders and owners do not look lightly upon poor decision execution. Similarly, the way a company structures its finances and operations for a transaction can often have a dramatic effect on the achievement of a proposed business goal. Under these conditions, financial due diligence and professional advice enhances the quality of decisions that buyers and sellers must take.

Additionally, in context of Startups and small companies it becomes more complicated to make assessment of deal values as the valuation is linked with several non-qualitative factors and thus it makes informed decision-making challenging!

Hence, it becomes imperative to conduct appropriate Due Diligence for curative measure. In essence, the reason for conducting a due diligence review is to minimize any unexpected developments that could occur with the proposed transaction and to maximize transaction value.

At MAXCON, our professional staff has the knowledge and experience needed to assist every individual in organizing and completing both buy-side and sell-side due to diligence reviews. Additionally, our staff also supports our client efforts according to their specific needs and provides them with a timely and accurate assessment of proposed transaction.

Why Maxcon?

We offer financial due diligence services – both from a purchasing and supplier side. We do so to help realize the results needed collectively with a forward-thinking approach from deal planning, execution and integration.

We have over time developed sound capability to bring small companies and investor on a single page and coordinate the execution of the entire deal from start to end. Our experts review the business plan and present it to the investors with recommendations.

The concept of our financial due diligence process is a systematic analysis of data from the focus company to obtain an overall image of the company in connection with the corporate deal. In particular, we emphasize identification and assessment of risks and opportunities when looking at assets, liabilities, financial role and results of the focus company. Our industry experts add significant value to identify the underlying risks of the incumbent decision as well as highlight the non-quantifiable elements that are mostly unknown roadblocks to business growth.

Other Benefits:

Improving the company’s reputation– Customers leave companies and abandon properties for many reasons. Often, it’s simply because they have moved. However, in most cases, customers stop using a company’s services because they are not satisfied. In these cases, trying to associate with an inactive customer and resolve the issue to their satisfaction can turn a negative view around. In fact, if the company suffers from a negative deal for any reason, you can point to efforts to find missing customers and return the property as a positive fact to help offset any negative arrays.
Reviving vendor and customer activity– As being known, targeting the attention of a new customer is usually a matter of being in the right place at the right time. For this same reason, your efforts to reconnect with inactive customers can lead to the return of dormant property. A customer might start to use an old account simply because you contact him or her at a time when there is a need for the account. No matter the reason your customer starts to use the old account, your efforts to reconnect can lead to increased deposits, additional purchases, and potentially years of positive advantages. This in turn leads to added profits and revenue.

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