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Due Diligence Audit Services in Dubai UAE

What is 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.

A due diligence service should not take more than 60 days.

What is the importance of due diligence Service in Dubai?

Due Diligence services in UAE has materialized as the 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 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 Process in Dubai, UAE

  • 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 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 allow 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 in UAE

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 focus of some material future events and matters

  • Due Diligence for amalgamation, acquirement, privatization or corporate finance transactions to help the decision of 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 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, Software Consultancy, Management and Tax Consultancy. We have been providing the best audit services in Dubai and the rest of the UAE. At CDA, we assist our clients to perform all type of Due Diligence in order to maximize the value from a proposed transaction.

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

Accounting services in Dubai

CDA is one of the leading accounting services in Dubai offering custom accounting solutions for your business. If you are looking for someone to manage your accounts but don't want to set up a full-fledged accounting department in your company, then accounting outsourcing in Dubai is the best option. CDA has been providing reliable accounting services to various businesses across Dubai.

We are equipped with expert accounting professionals who deliver the best solutions after analyzing your business operations and the type of solutions you need. This makes us your go-to accounting company in Dubai. At CDA, we commit ourselves to manage your finances in the most efficient manner possible. Being an accounting firm in Dubai we are well-versed in commercial company laws as well as federal laws in Dubai which makes us the perfect fit for the effortless management of your accounts.

When you entrust your accounts to us we manage your finances excellently while you enjoy the perks of outsourcing accounting services such as expert advice and guidance on accounting, easier problem solving and improved decision making.

Bookkeeping services in Dubai

CDA Accounting and BookKeeping Services LLC is your one-stop source for all your bookkeeping services in Dubai. Managing your books in a befitting manner calls for a professional bookkeeping service provider and the team of expert professionals at CDA with years of experience will provide the best bookkeeping services required for your business. For any business entity operating in Dubai proper maintenance of books of accounts is necessary to ensure the smooth functioning of the business.

Many small businesses cannot afford to have a fully functional accounts department or hire full-time employees for bookkeeping. This is where CDA proves itself capable of handling all your bookkeeping requirements. When you outsource bookkeeping activities, you save money as well as your precious time. At CDA, we provide professional and personalized bookkeeping services that are suited to the requirements of your business.

The years of experience and professional services rendered by our expert team makes us one of the best in Dubai bookkeeping services. If you find it difficult to manage the legal and technical aspects of bookkeeping then it's high time you outsource your bookkeeping services to the experienced members at CDA.

Audit firms in Dubai

When it comes to audit firms in Dubai, CDA is the best offering suitable solutions to your business after an in-depth analysis of the organization and finding the problem areas. Our seasoned professionals will check all areas of your business to find potential risks to your business operations and devise effective strategies to overcome the risks. Not managing the risks properly can lead your business to troubles and therefore it is absolutely necessary to hire the best audit firm to save your business the troubles.

CDA has been providing the best internal audit services in Dubai as we have the experience and expertise to manage internal audits seamlessly. We offer custom audit solutions depending upon the requirements and nature of your business. We conduct an internal audit of your organization with a risk-based approach. We not only analyze and audit your business operations but also suggest steps to improve risk management policies.

When you approach CDA for auditing in Dubai, we take care of all the legal and compliance matters so that you can focus on running your business efficiently rather than worrying about risks and risk management.