Due Diligence Audit in Dubai
The importance of conducting due diligence when making business decisions can never be overstated. Companies in Dubai understand this and are increasingly relying on the services of due diligence companies to help them make sound financial decisions.
At AFS Auditing, we provide a comprehensive range of due diligence services, including financial due diligence, market analysis, competitive assessment, and more. We have a team of experienced professionals who are well-versed in the local laws and regulations so you can rest assured that your business is in safe hands.
What are the types of Due Diligence that you would adopt in UAE?
Financial Due Diligence: Financial due diligence is often nicknamed accounting due diligence in professional circles. During a financial due diligence audit auditors in Dubai provides the potential investors with an understanding of a company’s sustainable economic earnings, historical sales and operating expense trends, historical working capital needs, key assumptions used in management’s forecast and key personnel and accounting information systems.
Commercial Due Diligence: Investors undertake commercial due diligence with the help of audit firms in Dubai to measure a company’s commercial potential. By carrying out commercial due diligence, the investors can obtain a complete overview of the target company’s internal and external environment. This is quite different from financial due diligence, which only assesses the financial health of a company.
Tax Due Diligence: Assessment of tax impact arising from ‘change in control’, assessment of historical tax exposures, identifying tax-saving opportunities, assessment of current tax position, assessment of various modes of tax neutral deal structuring.
Human Resources Due Diligence: Focuses on the impact of human capital by identifying the qualifications, technical ability and working initiative of the target firm’s senior management personnel and key staff.
Operational Due Diligence: Operational due diligence audit deals with the assessment of non-financial factors of a target company. It helps the prospective buyers to have a better understanding of business operations, organizational structure, internal process & system, performance evaluations of the management team and HR process of a target company.
Legal Due Diligence: Investigation of any legal risk associated with the rights and obligations of the investment decision. Issues may typically involve property ownership, intellectual property and employment disputes.
Administrative Due Diligence: Involves verifying admin-related items such as facilities, occupancy rate, number of workstations, etc. The idea is to verify the various facilities owned or occupied and determine whether all operational costs are captured in the financials.
Asset Due Diligence: Includes a detailed schedule of fixed assets and their locations, all lease agreements for equipment, a schedule of sales and purchases of major capital equipment during the recent past, real estate deeds, mortgages, title policies, and use permits.
Intellectual Property Due Diligence: Schedule of patents and patent applications, schedule of copyrights, trademarks and brand names, pending patents clearance documents, any pending claims case by or against the company in regard to violation of intellectual property.
Customer Due Diligence: When forming new business relationships, companies will often want to establish if a prospective customer is involved with illegal practices such as money laundering, or funding terrorist organizations. This type of due diligence minimizes the risk of conducting business with a new customer. A customer due diligence audit is becoming more relevant since the UAE introduced the Anti-Money Laundering and Counter Financing of Terrorism (AML-CFT).
Merger & Acquisition Due Diligence: Merger and acquisition (M&A) due diligence is initiated when two businesses intend to merge into one, or when one company is considering whether to acquire another. Auditors in Dubai carry out M&A due diligence to help a buyer determine whether to proceed with the proposed deal. M&A due diligence help the buyer to understand likely risks, and also plan for the acquisition of the target company without any worries.
Why is a Due Diligence important in UAE?
A due diligence is defined as an investigation or audit of a potential investment, product, or a key business decision in order to confirm all facts pertaining to it. A good due diligence goes beyond the numbers and aims to analyze what lies behind these. Since a due diligence helps to gain a deeper understanding of the target organization or investment, it is prudent for any individual or organization to carry out such an exercise in order to protect themselves against any unforeseen risks.
Who conducts the Due Diligence audit?
Audit firms in Dubai have a team of forensic accountants and equity research analysts responsible for conducting the due diligence audit. Due diligence audit is different from a regular audit in several ways. They specialize in forensic research and auditing that helps detect fraud, hidden transactions, inaccurate representations of data, and manipulation of data. All of these undetected factors contribute to flawed investment decisions.
What are the major benefits of Due Diligence Audit?
A due diligence audit advances the status of a business
It assists in the discovery of any hidden information pertaining to the company
It acts as a risk appraisal tool for a business
It allows buyers to make informed decisions and evade surprises at the end of a deal
It empowers buyers to be cautious. In this way, the purchaser can ensure that the product is defect-free and fit for purpose.
It ensures that buyers ‘get what they pay for’.
Why Choose Us?
We believe that our experience, expertise, and commitment to customer service make us the ideal choice for companies looking for a reliable due diligence company in Dubai. Our team will work closely with you to ensure that all aspects of your decision-making process are well-considered and supported by accurate data and analysis.
For any of our services, Contact Us