Due Diligence - Business Investment What was the problem? What did we do? BDC's team within 10 working days: • Ascertained the strategic intentions of the client and looked at    how this business might fit into their organisation and governance    structure • Compiled a list of the information required to perform due diligence • Interviewed the business management and staff to examine all    aspects and operations of the business • Read all key documents about the business • Met with key clients to look at forward projection of their needs    from the business over next 2-3 years and the business/client    relationship • Analysed the future business environment, drivers of change and    strategic risks • Audited key financial transactions through company systems and    procedures • Examined and tested the culture of the business • Examined the assets and leases considering their future use in the    business and aspects of transferability • Separated the activities of the business and the company within    the sets of accounts • Examined key staff contracts of employment and sales • Looked at how the transition would be managed if purchased • Worked with an associate to forecast future maintainable earnings    and cashflow requirements • Analysed the risk of the business to form a view of capitalisation    rate to value the business • Had the draft findings peer reviewed for testing assumptions and    findings • Wrote a final detailed report of findings and spoke to it at the    client's Board meeting What was the outcome? The client received information it had not previously been aware of, as well as an objective look at the strategic fit of the business to its longer term plans. This enabled it to make a more robust decision on its intended purchase. The company got reviewed to a depth it had not experienced prviously and learned some valuable lessons for its future growth and development. Back