What is Due Diligence?
Leading up to closing a major transaction, your company is put under the microscope, examined and scrutinized by prospective bidders. This process is known as due diligence.
Due diligence is usually conducted after you and a bidder have agreed in principle to a deal, or that one may be beneficial, but before any binding contract is signed.
Conducting due diligence is the best way for bidders to assess the value of your business and the risks associated with a deal. The process involves giving bidders access to important and sensitive information about every aspect of your company, so they know exactly who they are dealing with.
Performing this type of evaluation largely contributes to informed decision making, enhancing the amount and quality of information available to bidders and ensuring that this information is systematically applied to the decision at hand.
The due diligence process allows the bidder to assess your business’s financial position, deal readiness and identify risks and proceeding potential. Done correctly, it can be the difference between a deal that makes you money and a deal that costs you money.
During due diligence, poor organisation can result in your bidder finding cracks in your business. This creates stress for both parties, costs time and money to resolve and increases the risk of the deal falling through.
Ansarada’s Due Diligence Checklist keeps you organized by telling you exactly how to structure your business data - so you impress your bidders.
Once you’re ready to implement your checklist, use our AI-powered data Rooms to uncover a stress- and risk-free due diligence process.
Due diligence is the ideal opportunity for you to answer any questions bidders might have about your business and the prospective deal.
During a deal, a large amount of time is spent running Q&A, so we’ve used our know-how to make this process easier than ever. Use Ansarada’s due diligence Q&A to ensure you’ve put your best foot forward and proved your business worthy of investment.