Trusted Transaction Due Diligence
Due diligence is an indispensable step in any significant financial transaction, encompassing a thorough investigative process to verify the accuracy of facts and details relevant to the matter at hand. This process is particularly crucial in the financial realm and involves a meticulous examination of financial records before engaging in a proposed transaction with another party. CKH Group’s seasoned professionals bring a wealth of experience and expertise to the table, ensuring that the due diligence process is thorough, efficient, and aligned with our clients’ goals.
As a leading CPA firm based in Atlanta, we take pride in offering Due Diligence Services designed to:
- Identify and mitigate risk
- Enhance the quality of information provided to decision-makers
- Save you time and effort through our expert knowledge
What Is Due Diligence?
Due diligence is a comprehensive investigative process integral to confirming the accuracy of facts or details in a matter under consideration. In the financial realm, it specifically entails scrutinizing financial records before engaging in a proposed transaction with another party. This systematic approach serves as a means to analyze and mitigate risks associated with business or investment decisions and is usually completed before a deal closes to provide the buyer with an assurance of what they’re getting.
CKH Group can prepare your due diligence report prior to a potential transaction, helping to ensure trust in the transaction and enhance the quality of information available to decision-makers.
What is a Due Diligence Report?
A Due Diligence Report is a summary of the due diligence process and is key to finalizing any major investment, merger, acquisition, or legal agreement. This report varies depending on the industry and the purpose, but usually, it will give an extensive explanation of the company’s financial records and overall standing in the marketplace. Included in the due diligence report may be the company’s financial data, a market analysis, information about business operations and procurement, payroll, taxes, intellectual property, and even data on the board of directors.
In the event of a company undergoing a merger, acquisition, planning an initial public offering (IPO), or contemplating expansion, an M&A due diligence report would specifically be used. This report would encompass an examination of financial statements and projections, the capital structure, and a comprehensive SWOT analysis, delving into the company’s strengths, weaknesses, opportunities, and threats within the marketplace.
What Types of Due Diligence are There?
For mergers and acquisitions, there are typically these major types:
Operational Due Diligence directs attention to the company’s operations, essentially examining how the company transforms inputs into outputs. This type of due diligence is generally regarded as the most forward-looking.
Commercial Due Diligence: This type assesses the market in which the business operates. It includes market analysis, competitive landscape, market trends, customer analysis, and business model evaluation.
Strategic Due Diligence: Strategic due diligence evaluates the strategic fit of a potential acquisition or partnership. It looks at how well the business aligns with the strategic goals and objectives of the acquiring company.
Environmental Due Diligence: This involves assessing environmental risks and liabilities. It includes reviewing compliance with environmental regulations, potential contamination issues, and the impact of environmental policies on the business.
Regulatory Due Diligence: This involves examining a company’s compliance with industry-specific regulations and the potential risks of non-compliance.
Tax Due Diligence: This focuses on assessing a company’s tax compliance. It includes reviewing tax returns, identifying potential tax liabilities, and understanding the tax implications of a transaction.
Financial Due Diligence: This involves examining a company’s financial statements and accounts to assess its financial health. It includes analyzing historical trends, current assets and liabilities, cash flow, debt levels, and projections.
CKH’s responsiveness has been excellent. Anything I’ve needed they respond back immediately. They do an awesome job, and there’s so much I’ve got going on that was impossible to do by myself, so CKH has been an incredible help. I feel confident in CKH, like a weight has been lifted off my shoulders. I have been very pleased with CKH Group.
Why Choose CKH Group?
CKH Group’s Accounting and Advisory services are designed to help businesses navigate the complexities of financial management in today’s dynamic economic landscape.
With CKH Group, you’re not just getting a CPA firm; you’re gaining a trusted partner committed to your success. Discover the CKH Group advantage, where excellence, integrity, and expertise come together to create a powerful accounting and advisory partnership for you. Contact us today to explore how our accounting services can add value to your organization.