A due diligence audit is a process of assessment of an organization to evaluate its financial health and performance. It helps to understand the company competencies, the target market, potential customers, and profit-making capabilities. In general, companies want due diligence audit firms in Dubai to prepare an audit report at the time of mergers & acquisitions of businesses. It helps in decision-making, keeping all risks and opportunities at the forefront. A due diligence audit can be a legal obligation, but it commonly applies to voluntary investigations.
Types of Due Diligence Audit:
Following are the most common types of due diligence audits in UAE:
Financial Due Diligence
Audit firms in Dubai, UAE review the transaction data, historical trade results, cash flow & balance sheet of a company to validate the financial statements. The purpose of hiring financial due diligence auditors is to know the financial risk & forecast of the company. It also includes funding requirements of a business in future.
Commercial Due Diligence
Commercial due diligence will determine various commercial factors including competitor analysis, target market research, product reviews, service feedback & any other data the acquirer wants to know. Due diligence audit firms in Dubai provide insights that support informed commercial decisions.
Operational Due Diligence
The operational due diligence involves examining the non-financial factors of a company. To have a better understanding of business operations, organizational structure, internal processes & systems, performance evaluations of the management team, and HR processes of a specific company, auditors in UAE conduct this type of due diligence audit.
Legal Due Diligence
Legal due diligence helps to evaluate any legal risk involved with the company. It identifies any legal disputes whether with local bodies, competitors or with its own employees.
Jitendra Chartered Accountants is one of the leading due diligence audit firms in Dubai, UAE. We offer all kinds of due diligence audit services in Dubai to help you make confident decisions to merge with or acquire a company in the UAE without getting into any kind of post-transaction trouble.