H2R CPA's Due Diligence services provide business owners with assistance in evaluating a business situation from all perspectives before making a business decision.
Although it is most commonly performed when buying a business, Due Diligence may be applied to many other situations.
While few business activities are more complex than making an acquisition, a thorough pre-transaction diligence process can help you gauge complexity and risks associated with the pending transaction. Well-planned diligence offers you an important opportunity to assess values for negotiations and to better anticipate the many business issues that generally emerge during the post-acquisition period.
The main goal of the Due Diligence process is to identify any discrepancies between what is reported and what is actually happening. Performed to protect both parties, but primarily the purchaser, Due Diligence uncovers potential liabilities and financial matters to make sure nothing is hidden.
H2R CPA's Due Diligence services include a variety of specific tasks, including:
- Examining all records and documents
- Spending time at the business location, talking to managers, executives, employees
- Checking sales against customer lists to verify that the business has the customers it says it does
- Looking at potential future plans for expansion, condition of facilities, equipment, furniture and fixtures to verify that they are as reported
- Looking at all documents which might incur liability for the company, including sales agreements, purchase agreements, and liens on assets
- Examining documents relating to any ongoing or potential lawsuits, and recent litigation that has concluded