Due diligence
A due diligence review is conducted during a business acquisition to assess a company’s credibility. This financial review carefully examines whether the company is worth the purchase price and what risks are associated with the proposed acquisition. The due diligence review covers financial, technical, tax, legal, and economic aspects, among others, providing a comprehensive overview of all a company’s data and figures. Do not underestimate the due diligence process.
There are two rules for the buying and selling process
There are two rules in the buying and selling process. As the seller, you are required to disclose information as fully as possible. And as the buyer, you are required to review all of this information.
When managing a sales process, we draw up an Information Request List (IRL) that includes all the information the buyer will want to see from the seller. This ensures that most of the information is already prepared before the due diligence phase begins. We ensure that certain parts of this information remain confidential (by redacting them), organize the information in the correct order, and place it in a vault (virtual data room) once due diligence begins. Ultimately, by the end of the due diligence process, all information in the data room is considered “disclosed” information. This means that the buyer cannot later challenge any of the information that has been disclosed.
If we represent you as the buyer, we’ll provide a list of information and documents we’d like to see from the seller. In addition, we’ll engage an external specialist firm to conduct the due diligence review. They’ll ask their own questions and compile a report based on all their findings. We’ll go over this report with you in detail and discuss all the key points. We’ll advise you on what to look out for and what does and doesn’t look promising. In this way, we’ll guide you through the buying or selling process, always keeping your best interests in mind. At Hogenhouck M&A, we have extensive experience and know exactly what to look for. If the due diligence reveals that it is not a good deal for you, we’ll give you our honest opinion. But of course, you’re always the one who makes the final decision.
How long does a due diligence review take?
An average process takes about two months. However, we’ve also found that this depends entirely on the company. If all the information is in order and communication is smooth, the process will naturally proceed more quickly than if that isn’t the case. Drawing on our expertise and our relationship with you, we do everything we can to ensure that the process is completed as quickly and smoothly as possible.
Our approach?
We take as much of the burden off your shoulders as possible during the due diligence process, for example, when it comes to submitting files. It takes quite a bit of time to ensure that confidential information (such as GDPR-related data and customer information) is redacted, that all information is organized in the correct order, and that it is uploaded to the virtual data room. We thoroughly review each document to ensure that only the necessary information is visible to the buyer.
This is followed by an intensive process to refine all the information. As an entrepreneur, you may be inundated with questions. We review these, filter out duplicate questions, and answer those for which the information is already available in the data room. We’ll only present you with the questions for which we don’t have any information. This way, you—as an entrepreneur—can stay as calm as possible and continue with your day-to-day business as much as possible. Our approach saves you a great deal of time.
What do we want to do for you?
We take as much of the burden off your shoulders as possible during the due diligence process, for example, when it comes to submitting files. It takes quite a bit of time to ensure that confidential information (such as GDPR-related data and customer information) is redacted, that all information is organized in the correct order, and that it is uploaded to the virtual data room. We thoroughly review each document to ensure that only the necessary information is visible to the buyer.
This is followed by an intensive process to refine all the information. As an entrepreneur, you may be inundated with questions. We review these, filter out duplicate questions, and answer those for which the information is already available in the data room. We’ll only present you with the questions for which we don’t have any information. This way, you—as an entrepreneur—can stay as calm as possible and continue with your day-to-day business as much as possible. Our approach saves you a great deal of time.
Why sell a business? What do you want to achieve?
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