When one business merges with or acquires another, there needs to be some thorough research on the target company in order to accurately appraise the enterprise. Such research is called ‘due diligence’ and in the Middle East, there is little public information regarding businesses, which makes a due diligence audit essential, if you want an accurate appraisal of a Saudi Arabian company.
Professional Appraisal
If you are looking to invest in, or acquire a Saudi Arabian business, talk to a due dilligence attorney who can carry out an in-depth audit of the target business, enabling you to make an informed decision. A number of professional experts are required to compile a detailed due diligence report for the client, which would include the following;
- Financial history diligence
- Legal due diligence
- Operational due diligence
- Taxation diligence
All of the above categories are important when appraising a Saudi Arabian business with a view to acquiring or merging.
Financial History
A team of due diligence experts can examine the details of a company’s financial history, which helps to determine whether or not the business will perform well in the future.
Company Legality
It is important to know about the legality of a business; there could be lawsuits pending or intellectual property rights have been infringed and a case might be ongoing. It is possible for a due diligence lawyer to check that no legal issues are pending and that all is legitimate and above board.
Operational Due Diligence
The due diligence audit includes detailed information about how the business is managed and how it performs and that helps you determine the chances of continued success. You need to know whether or not the business aligns with your investment strategy and having a due diligence audit carried out is the best way to move forward.
Taxation History
In order to ascertain the value of a company, you need to know about the history of tax returns; the audit also contains information to appraise future tax liabilities. If you would like to talk to a professional due diligence attorney who is based in Saudi Arabia, Google can take you to the website of a leading law firm that can compile a detailed due diligence report to help you make an informed decision regarding whether or not to invest in, or merge with a company.
Lack of Public Information
If you are planning on acquiring a Western business, there would be a lot of information that is publicly available; not so, however, for a Saudi Arabian company. This is one reason why a due diligence audit is required to find out many details that can help you to make an informed decision. Fortunately, there are law firms in Saudi Arabia that compile due diligence audits for their clients and they can be found with an online search.
Don’t Take Chances
In business, it is vital that you minimise risk and by commissioning a due diligence audit, you are doing just that; there may well be underlying issues that are not apparent and the due diligence audit would reveal any minor issues that the business might have. It would take a while to put together a due diligence audit, with a team of specialists, each working on one specific aspect of the report. The report is delivered to you and you can therefore make an informed decision regarding merging or making an acquisition.
If you would like to learn more about due diligence audits, you can arrange an informal Zoom call with a leading law firm and you can discuss things with a leading expert.