In finance, due diligence is the process of research and analysis that takes place in advance of an acquisition, investment, business partnership or bank loan in order to determine the value of the subject of the due diligence or whether there are any “skeletons in the closet”.
Due diligence goes far beyond financial analysis. It differs from an audit in that the latter is concerned with the truth and fairness of historical financial statements only. The scope of a due diligence review is generally wider – it includes a review of historical figures as one of its elements and also involves analyzing the sustainability of business, competition, business plan, future prospects, corporate and management structure, technology, synergy of target business to company’s business apart from researching regulatory compliances, legal issues and other financial data.
By Outsourcing this to Xcel Accounting, you get the benefit of experience & objectivity.