Tuesday, March 26, 2013

Ensure, your Future!!!

Often we hear the word due diligence all to do with people who verify your details for a credit card, bank account or loan. But that is not all. The term Due Diligence was used in the United States after establishing their Securities Act 1933. It required that brokers and dealers disclose to the investors what they find when buying or selling equity so that would not be held responsible for non-disclosure of information. Over a period of time this term came to be used for mergers, acquisitions and began to be adopted for many other uses. It can be described as examination of the target for a merger, acquisition, financial transaction or privatisation etc. They ask questions, which helps them get familiar with the target. They study their policies, practices, analyse how much to pay, how to buy, and their valuation. The main area for concern is financial, legal, market, labour, tax; real and other properties etc. As the private sector continues to progress in the world of business and finance, the decision to fund or not to fund is based upon a balance of objective data analysis, insight into the general state of organizational health and stability, and intuition. Due Diligence is used in civil litigation, supplier quality engineering, criminal law, commercial property, information security, human rights and philanthropy, hedge funds and forex. Each investigation is different but concerns itself in the investigation of a corporation. This investigation assures the investor or buyer that the company is rock solid, has funds, and is not bankrupt. Usually when two companies merge a legal team is hired that is an expert in due diligence work and they also have trained investigators to look into the various aspects like finance, employees, bank records, legal status, history, and its assets and liabilities. The information is gathered and then given to an analyst. The investigators look into even minute details like employees not having faith in the company dealings. This investigation is to make sure that a merger or an acquisition faces a smooth road and not a bumpy when the transition occurs. An investigator uses mystery shopping, asset search, background checks, surveillance, and various different types of investigative techniques including discreetly talking to your employees, sourcing public records, checking out overseas operations. All the information that will help make a better deal. No legitimate company would object to such an investigation. Due Diligence work is undertaken by Sleuths India Consultancy (P) Ltd. Log on to their website www.sleuthsindiadetectives.com or you can call them on 1800-102-0208.


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