CORTMA―certified businesses are subjecting to Due Diligence. Due Diligence defined as an investigation of a potential investment. It refers to the necessary and accurate information that an investor (individual or legal) must take before entering an agreement or transaction with other parties. Today, IT and digital capabilities are often the driving forces behind any transaction, and they can provide significant deal value with the right Due Diligence and integration planning.
A Due Diligence project includes the detailed business diagnosis, examination, research, analysis and revision of all the company’s legal and financial assets. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A typical example of Due Diligence in various industries is how a potential acquirer evaluates a target company or its assets for an acquisition.
In the case of investor entry and not a complete redemption, sellers can also, in turn, perform a due diligence survey with buyers. In this way, unnecessary business lesions may arise from assets and liabilities whose values are devaluing, and vice versa have a zero value and have been declared falsely or with inaccuracies.
Due Diligence from the perspective of controllers, out of restriction or object agreement, should consider various factors when performing due Diligence on stock, including company capitalization, revenue, valuations, competitors, management, risks, etc.