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Due Diligence Services in Dubai, UAE

Due Diligence is typically an audit process done in organizations to inspect all its financial transactions and performance. If you are a business owner in UAE CDA will perform due diligence audit process, providing you with clear insights into the possibility of potential investments, merger or joint venture projects, etc. By conducting due diligence in Dubai and UAE, you can determine the financial performance of your business, understanding its earning capabilities, current financial position, prospective customers, and competency of the management.

Due Diligence services in Dubai

Why Due Diligence?

The term ‘due diligence’ in business means a ‘reasonable investigation.’ Due diligence is an investigation or audit of a potential investment or product to confirm all facts, that might include the review of financial records. Due diligence refers to the research done before entering into an agreement or a financial transaction with another party. The overall intention of a due diligence audit is to help the customer evaluate the history, performance, ability, and goodwill of the business.

Availing due diligence audit services in Dubai helps you identify issues related to transactions, establish the true value of a business transaction, evaluate the history, evaluate the risks and opportunities of a proposed transaction, avoid a dangerous transaction, confirm whether each transaction complies with investment criteria, etc. CDA offers exceptional due diligence services in UAE to support our clients accomplish their business goals on time without spending a huge sum of money.  

Due diligence service should not take more than 60 days.

Importance of Due Diligence  Service

Due Diligence services in UAE has been materialized as a separate professional service for the accounting firms in Dubai and audit firms in Dubai. The due diligence stage is an indispensable element to a successful commercial transaction. While purchasing a business, the due diligence stage allows the buyer to gauge the value of the business and to bear out the information regarding the business in order to determine whether to proceed with the purchase or not.

Types of Due Diligence

a) Commercial Due Diligence

Commercial due diligence is carried out to scrutinize various commercial factors, including market conditions, competitor analysis, product or service assessment, and any other commercial data the user wishes to investigate.

b) Financial Due Diligence

Financial due diligence is a re-examination of the past records, including trade results, cash flow and balance sheet of a business to know its financial situation. It also comprises a check of forecast performance and funding requirements.

c) Legal Due Diligence

Legal due diligence is the investigation of any lawful risk connected with the rights and obligation of the target company that may involve employment disputes, intellectual property, and property ownership.

d) Operational Due Diligence

Operational due diligence involves the reassessment of non-financial matters of a business, which may include HR activities, insurance, and risk assessment, review of systems and processes, evaluation of management team, etc.

e) Environmental Due Diligence

It provides a critical and independent assessment whether the company complies with the environmental policy or not.

f) People Due Diligence

The People Due Diligence involves the study of the old organizational structure and the new one which might be established if the acquirement is a success, and the study of the employment contracts between the company and its employees, costs of terminations if any and the potential benefits.

Objectives of Due Diligence

  • To avoid a bad business transaction

  • To bear out that the transaction complies with investment or acquisition criteria

  • To gauge the risks and opportunities of a proposed transaction

  • To trim down the risk of post-transaction disagreeable surprises

  • To look into the affairs of business as a cautious business person

  • To corroborate all material facts related to the business

  • To corroborate that the business is what it appears to be

  • To generate a trust between two unrelated parties

Distinct Areas under Due Diligence Audit Process:

  • Compatibility audit.

  • Financial audit

  • Macro-environment audit.

  • Legal/Environmental audit

  • Marketing audit

  • Production audit

  • Management audit

  • Information systems audit

  • Reconciliation audit

Business Due Diligence Processes 

  • Term of Engagement – Discuss and sign all terms and conditions

  • Effective scrutiny – Collection, Evaluation and Documentation of operational data

  • Fiscal Inspection – Collection of the financial statements of the company, and examination and documentation for further process

  • Legal scrutiny – Reassessment and documentation of the legal and regulatory information of the concern

  • Reporting – Sharing of the end result with the customer.

Major Benefits of Due Diligence Audit

  • A due diligence Audit advances the status of a business

  • It helps to find out any concealed information about the business

  • It acts as a risk appraisal tool for a business

  • It allows buyers to make informed decisions and evade surprises at the end of a deal

  • It empowers buyers in ‘caveat emptor'. The purchasing person can make sure he is free from defects and fit for purpose.

  • It ensures that the buyers ‘get what they pay for’

Categorization of Due Diligence services

Due Diligence services in UAE can be classified into different classes depending on its usage and purpose:

  • Due diligence key questionnaire like how do you buy, how you structure the acquisition, or how much you should pay, etc.

  • Due Diligence with the focus of some material future events and matters

  • Due Diligence for amalgamation, acquirement, privatization or corporate finance transactions to help the decision of the buyer

  • Due Diligence services aiming at acquisition decision through the principles of valuation and shareholder value analysis

  • Due Diligence for the current practices of process and policies

CDA Due Diligence Services in Dubai, UAE

CDA accounting and Bookkeeping Services LLC is one the leading firms in UAE you can rely on for reliable due diligence services. Our team of expert chartered accountants, bookkeeping, and finance professionals are competent enough to provide valuable insights into your business transactions for better future performance, avoiding risks and mistakes.

CDA provides the following due diligence services to our clients in Dubai, UAE:

  • Help to make out concealed costs, emergencies, and obligations of the business

  • Recognize and quantify deal-specific risks of the concern

  • Find the problems which are likely to affect the purchase price or contract conditions

Why CDA?

CDA is a financial consultancy firm in Dubai, offering a wide range of services including Accounting, Auditing, Accounting Software services, Management and Tax Consultancy. We have been providing the best audit services in Dubai and the rest of the UAE. Our due diligence audit services in Dubai are beneficial for you to get clear information about all your business transactions and access an accurate due diligence report on risk assessment for the empowerment of your business, building a greater reputation. At CDA, we assist our clients to perform all types of Due Diligence in order to maximize the value from a proposed transaction.

Contact us for any Due Diligence Services in Dubai. We are glad to help you.

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