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Due Diligence - Program of Critical Analysis

Autor:   •  November 25, 2011  •  Essay  •  367 Words (2 Pages)  •  1,668 Views

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Due diligence is a program of critical analysis that companies undertake prior to making business decisions in such areas as corporate mergers/acquisitions or major product purchase/sales. Evaluation activities as a professional services are necessary for the operation of a market economy, by the scientist, are trained, knowledgeable firm, have extensive practical experience and high-fidelity implementation. All business activities are influenced by the concept of value. The appraisal aims to find the reasonable value of the property on the market. Appraisal is very important in the decision to buy, sell, finance, management, ownership, taxation, leasing, insurance, mortgage... Due diligence process is a process of systematic, logical. Due diligence is and should be a thorough and complete process. This means having due diligence is all about validating facts, eliminating assumptions and digging more information about your investment. Due diligence process is also an action plan in an orderly close and layout consistent with the basic rules have been defined, it makes the valuation reached a firm conclusion or the estimated value basis and can be ensured. Due diligence process includes the following steps: Problem identification; due diligence plan; Collection of documents; Manipulate and analyze documents; Assessing the value of assets under valuation; Valuation report. Valuation is an art of valuation of assets (movable and immovable property), on the basis of considering the unique characteristics of each property with the common characteristics of each such properties (ex: shape parcel of land, the size of the house ...) as well as consider the intangible factors of risk (risk associated with future profitability ...) and legal factors (ownership, permits ...) affect property values. Due diligence include initial and subsequent investigation. Initial investigation includes account officer, credit analysis and credit clearance. Subsequent investigation: banks

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