An existing company (Acquiring Company) wants to expand its operations. It either grows organically or inorganically. Inorganically means acquisition of another company (target company) with similar operations.

Alternatively a company (Acquiring Company) is interested in venturing in a new sector/industry. Instead of growing organically, it decides to acquire a Company (target company) already having presence in the interested sector.

In both the scenarios, the acquiring company would be interested in understanding target company’s legal, financial, operational, human resources, environmental, technological state of affairs prior to acquisition. The Acquirer should not be faced with any surprises after acquisition.

The step of understanding the target company’s legal, financial, operational etc. position is known as DUE DILIGENCE.

Sangani and Company can assist the acquiring Company by performing DUE DILIGENCE on its behalf.

Due diligence involves understanding and reviewing in detail the target Company’s following areas:

  • - Legal aspect
  • - Accounting aspect
  • - Financial position and financial performance aspect
  • - Human Resources aspect

Thus based upon the findings the acquiring Company would be in a better position in its decision of acquiring the target company or in deciding the acquisition price.

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