Speed and cost. In a major full service law or accountancy firm the due diligence exercise is frequently handed down the line to comparatively junior individuals who will, nonetheless, may be charging £350+ per hour. Our team consists of professionals with years of experience gained at partner level at major City firms and in industry.
Because Corporate Due Diligence can move quickly and has a team of experts in all the disciplines which will be encountered, you will receive a report in good time to help you negotiate or renegotiate the price or, in a worst case, abandon the purchase or investment without incurring considerable legal, accountancy and other professional costs. It is an effective way of containing the costs of any such exercise. It also avoids unpleasant surprises at the disclosure letter stage.
Certainly less than instructing a major law or accountancy firm. Obviously, the larger the Target and the greater the spread and variety of its assets the more extensive the exercise will be, so it is impossible to give an accurate estimate without discussion. In most cases we are more than willing to agree a cap on fees or a firm quotation.
The investigations we have undertaken are varied. They include:
Evaluation of the book of business and trading position of Lloyd’s insurance brokers
Due diligence report on a large firm of chartered accountants prior to their acquisition by a conglomerate
Due diligence on a chain of high end shops selling ethnic art and furniture
Preparing a franchised chain of motor traders for sale to a competitor
Preparing the corporate affairs of an engineering firm prior to sale
Due diligence on an online dating agency
Due diligence on behalf of a substantial marketing and logistics operation with particular reference to possible human rights abuses (e.g. child and slave labour)
Pre purchase report on a chain of wine merchants with (having more than 200 branches) extensive investigations including employment, supply contracts, property, local authority, licences etc.
Due diligence prior to the acquisition of a regional investment fund with established investments in more than 120 local businesses and enterprises
Pre-investment due diligence on a gaming software business
Our belief is that we can carry out a typical due diligence exercise for approximately half the cost of instructing a full service law firm.