Due Diligence Audit in Dubai, UAE
Due Diligence Audit of a company are required by investors to assess the risks when acquiring a company. The main objective of carrying out Due Diligence is to eliminate or minimize the possible negative consequences of the transaction, as well as to optimize the business processes during the subsequent activities of the company. This examination makes it possible to identify the risks of invalidation of transactions, the initiation of disputes, the imposition of a financial penalty, and corporate conflicts.
DUE TAX VERIFICATION
Tax due diligence is conducted before the sale of a company, aiming to furnish the client with precise and honest insights into the company’s adherence to tax obligations, compliance with information and accounting requirements, and any pending claims from the tax authorities. This process serves as a means to mitigate financial and tax-related risks, while also enabling adjustments to the transaction price.
Financial Due Diligence
Auditing firms in Dubai, UAE, review a company’s transaction data, historical business results, cash flow, and balance sheet to validate financial statements. The purpose of hiring financial due diligence auditors is to understand financial risk and business prospects. It also includes the financing requirements of a business in the future.
Commercial Due Diligence
Corporate Due Diligence will determine various business factors, including competitive analysis, target market research, product reviews, service feedback, and any other data the buyer wishes to know.
Operational Due Diligence
Operational due diligence involves examining a firm’s non-financial factors to have a better understanding of the business operations, organizational structure, internal processes, and systems, performance evaluations of the management team, and the human resources process of a specific company, the auditors in UAE conduct this type of due audit diligence.
Legal Due Diligence
Legal Due Diligence helps assess any legal risk associated with the business. Identify any legal disputes with local agencies, competitors, or your employees.
MASAR is a full-fledged auditing firm in Dubai, United Arab Emirates. We offer all kinds of Due Diligence Audit services to help you decide to merge or acquire a company in the UAE with no post-transaction hassle.
Due Diligence Objectives
- To avoid a bad business transaction
- To verify that the transaction meets the investment or acquisition criteria.
- To measure the risks and opportunities of a proposed transaction
- To reduce the risk of unpleasant surprises after the transaction
- Go into a business like a prudent businessman.
- To corroborate all material facts relating to the business.
- To confirm that the business is what it seems
- To build trust between two unrelated parties
Distinct areas within the Due Diligence Audit process:
- Compatibility check.
- Financial audit
- Macro environment audit.
- Legal / Environmental Audit
- Marketing audit
- Production audit
- Management audit
- Information systems audits
- Reconciliation audit
Corporate Due Diligence Processes:
- Duration of Commitment: Discuss and sign all terms and conditions
- Effective control: collection, evaluation, and documentation of operational data
- Tax inspection – Compilation of the company’s financial statements, examination, and documentation for its subsequent process
- Legal scrutiny: Reassess and document the legal and regulatory information of the concern
- Report: share the final result with the customer.
Main benefits of the Due Diligence Audit
- A due diligence audit advances the status of a business
- It helps to uncover all the hidden information about the business.
- It serves as a risk assessment tool for a company.
- It enables shoppers to make informed decisions and avoid surprises at the end of a deal.
- Authorize buyers in “caveat emptor”. The person making the purchase can ensure that it is free from defects and fit for purpose.
- Ensures buyers “get what they paid for
Categorization of Due Diligence Services:
- Due Diligence services in UAE can be classified into different classes based on their use and purpose:
- Key due diligence questions such as how to buy, how the acquisition is structured, how much you have to pay, etc.
- Due Diligence with a focus on some future material events and issues
- Due Diligence for merger, acquisition, privatization, or corporate finance transactions to assist in the buyer’s decision
- Due Diligence services aimed at the acquisition decision through valuation principles and shareholder value analysis
- Due Diligence for Current Process Practices and Policies
We are offering professional audit services in the UAE, Including: