The due diligence inspection is a process that must be carried out by investors in cases of merging between companies, in case of one company is willing to acquire another company, partial investment or participation in business projects and alliances, and this examination must be carried out by an experienced team.
Al-Badr Corporation has a varied, complete and highly experienced team in due diligence inspection processes. This business includes everything in relation with what the buyer (investor) should know before making a decision to buy or participate and includes many items that vary depending on the activity, including but not limited to:
- Due Diligence Financial Inspection:
This type of inspection includes an analysis of the balance sheets of the previous three years in terms of profit margins, working capital suitability, operating and financial leverage, turnover rates, current liquidity ratios, cash, return on investment, internal control system and other financial indicators related to the field of business as well as other financial analysis techniques in addition to comparing all these indicators with standard ratios.
- Due Diligence Administrative Inspection:
This type of inspection is related to operating expenses, which include administrative, general and marketing expenses to ensure that all expenses are properly listed in the financial statements. The importance of this part lies in that it shows the investor size and quality of the costs he will incur if he wants to expand the project or in the event of adding a new production line.
- Assets Due Diligence Inspection:
This type of inspection plays a major role in the quality of the companies with intensive capital. It examines everything related to fixed assets, depreciation rates, replacement and renewal dates, and what is related to financial leasing. This item also includes real estate assets and mortgage.
- Human Resources Due Diligence Inspection:
Human resources inspection is very important in the cases of companies of intensive labor and it includes the analysis of number of workers and wage rates, Staff benefits, human resources management policies and the impact of underemployment on the performance of the company, as well as the proportion of shares allocated to employees of the company.
- Environmental Due Diligence Inspection:
Environmental inspection examines the extent of the damage caused by the company to the environment. This may cause the authorities to impose fines on the company as well as the reluctance of investors to invest in companies that cause damage to the environment.
- Tax Due Diligence Inspection:
In the tax inspection, tax obligations, methods of calculating taxes, and any suspended matters that are related to the tax authorities and all documents related thereto are examined.
- Intellectual Property Due Diligence Inspection:
In this type of inspection intellectual property, trademark and other intangible assets are examined. These things distinguish companies from their competitors and provide the company with an added value to its sales.
- Legal Due Diligence Inspection:
The legal inspection includes minutes of Board of Directors and General Assemblies as well as sister companies, bank loan contracts and operating licenses.
- Customer Due Diligence Inspection:
In customer inspection, all customer-related details are examined in terms of the statement of the major customers, credit facilities granted to customers as well as the age and quality of debts.