Due-diligence is ideally a systematic process used by investors to gather and analyse information before making absolute investment decisions. The purpose of performing due-diligence is to estimate and verify the facts and information provided by the company to understand the need for investment.
Due diligence facilitates the following:
- Identifies and mitigate key risks of business
- Involves development of investment thesis
- Agreement of the deal
- Access to leadership teams
- Plan for scale up business
- Potential of company’s assets/properties
- Scope for growth in market against competitors