Due diligence serves to reassure potential buyers or future business partners that their investments and relationships are financially sound and profitable, and there are low levels of associated risk across the entire organisation.
Our team has a thorough understanding of both the acquisition and vendor due diligence process, and the information required to determine the organisation's overall health. The scope of our work is tailored and agreed to suit the specific circumstances and requirements of a client and/or transaction.
Working with BDO experts across the firm, the team’s due diligence process involves a comprehensive review across six key components: financial, tax, integrity, human resources, risk, ESG and IT due diligence.
During the financial due diligence phase, our transaction and valuation teams assess the transaction's risks and opportunities through a process of enquiry, analysis and interpretation.
The last thing potential buyers want to discover is that their intended target has reputational issues, serious litigation involvement or is on an international watch list. Complementing our financial due diligence service, the integrity due diligence phase explores the entities behind the numbers.
Through a process of enquiry, our team identifies areas of medium to high risk impacting a transaction.
The aim of a tax due diligence is to understand what tax compliance obligations, liabilities and structures exist and where necessary help is needed to resolve issues before it’s too late. Within the tax due diligence phase, our team identifies the associated tax risks and consequences involved with the transaction, across the areas of income tax, payroll tax, FBT and GST.
BDO’s human resources due diligence professionals work with key stakeholders to review human capital within the organisation, as well as HR processes, procedures, structures and contracts. Our HR due diligence services include a review in areas including: cultural overview, workforce and talent management structures and risks, human resources policies and controls, legal matters and employment agreements.
BDO draws on a wealth of deep industry experience to help clients make informed business decisions and understand the risk profile of the target. Our professionals perform comprehensive due diligence investigations on individuals and entities in order to alert clients to risk, disclosure issues, and potential areas for negotiation. Our multidisciplinary project team leverage BDO’s global network and technological resources to provide reports uniquely tailored to each client’s individual risk profile and preferences.
ESG due diligence is the process of uncovering a company's ESG policies and risk factors. This information then assists our clients in making more informed, ethical and less risky investment decisions. ESG due diligence is applied to and is transactionally relevant for both buy-side and sell-side of a transaction, as well as becoming increasingly critical in understanding the impacts of general day-to-day operations of the business.
IT due diligence is a core component of a transaction as it significantly enhances the quality of valuation analysis, financial modelling and risk mitigation attributable to the transaction or post transaction integration activities. Our team works with business and IT leaders to evaluate a target’s IT strategy, technology footprint, inherent architecture and processes to develop solutions that match the goals of the transaction.
Contact our team to discuss your needs using the request for service form. Alternatively, call us on 1300 138 991 to speak with an adviser in your nearest BDO office.