Due Diligence- An Introduction
Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party.
The due diligence process allows an acquirer to identify and assess risks, liabilities and business problems in the target company before finalizing the transaction, potentially avoiding losses and bad press later on.
Due Diligence- An Introduction
Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party.
The due diligence process allows an acquirer to identify and assess risks, liabilities and business problems in the target company before finalizing the transaction, potentially avoiding losses and bad press later on.
DUE DILIGENCE TAX PERSPECTIVE
Primary interest perspective
Primary Interest reflects form of ownership of principal asset; facilities leases and easement rights are excluded.
Buyer due diligence
Assess the risks associated with the property you are planning to purchase. Review the documents and ensure that there are no legal encumbrances on the property.
Vendor due diligence
A Vendor Due Diligence (VDD) is a financial review of a sales object on behalf of seller which illuminates questions and issues that are relevant to potential buyers of the business.