StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Due Diligence and Evaluation Process - Essay Example

Cite this document
Summary
This paper 'Due Diligence and Evaluation Process' tells us that a lot of investors, who invested the majority of their savings in company shares, lost their money because of the recent share value dip. The current investors are extremely careful in making decisions about investing in the shares of the companies…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.8% of users find it useful
Due Diligence and Evaluation Process
Read Text Preview

Extract of sample "Due Diligence and Evaluation Process"

Due diligence is a term commonly associated with such an evaluation process. It refers to the care a reasonable person should take before entering into an agreement or a transaction with another party. It is an investigation or audit of a potential investment. Due diligence is a way of preventing unnecessary harm to either party involved in a transaction (Due Diligence – DD, 2009)

Most of the investors will evaluate the past and present financial records of the company before making decisions about the investment. So, the entrepreneur must prepare such financial records of the company for verification by the investors. An investor needs to be convinced about the financial capabilities of the company before making decisions about investing. For that purpose, the entrepreneur must present the financial history of the company in simple terms understandable to even a layman.

An executive summary of the business plan is also required by the founders of the venture to convince the investors. It is only through these business plans the investor will know about how the company is going to utilize the money collected from them. The investors also must be convinced about the scope of the business and the market opportunities and hence the business plan must be well written in simple words to attract the investors.

Some investors are keen on knowing more details about the company like the assets of the company, customers, environmental issues, foreign operations, legal matters, product issues, suppliers, tax issues, and matters relating to ownership change (Due Diligence Checklists, 2009) The current Investors are extremely careful in investing in shares and hence they will investigate about all the activities of the company before investing. They will analyze the prospects of the company based on the parameters mentioned above. They know that if the company's activities produce any environmental problems, then in the future they may face probes with ems the legal investors know that good customer are required for the growth of a company. The reputation of the products of the company will also be analyzed by the investors before making scions. They will also analyze the chances of possible ownership changes through acquisition or mergers. The founders of the venture must consider all these investors interested areas and must provide all such details to the customer to make decisions about investing.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business Essay Example | Topics and Well Written Essays - 500 words - 8”, n.d.)
Business Essay Example | Topics and Well Written Essays - 500 words - 8. Retrieved from https://studentshare.org/miscellaneous/1552535-business
(Business Essay Example | Topics and Well Written Essays - 500 Words - 8)
Business Essay Example | Topics and Well Written Essays - 500 Words - 8. https://studentshare.org/miscellaneous/1552535-business.
“Business Essay Example | Topics and Well Written Essays - 500 Words - 8”, n.d. https://studentshare.org/miscellaneous/1552535-business.
  • Cited: 0 times

CHECK THESE SAMPLES OF Due Diligence and Evaluation Process

Risk and Compliance Evaluation

EXECUTIVE SUMMARY Software as a Service and Cloud Computing are innovations that were spawned by the internet technology.... Both concepts could practically lessen the operating expenses of the Retail Investment Brokerage Firm including its capital expense by outsourcing its Software needs as well as its computing requirements....
16 Pages (4000 words) Essay

Valhalla Partners Due Diligence

This opportunity, if Art Marks decided to vote yes, would allow Valhalla to test out their new due diligence process and decided whether or not the process was a good idea.... The due diligence process consisted of a twelve step process that followed a certain order.... This due diligence process would play a huge role in the decision by Marks.... The due diligence process would help ensure that Telco Exchange is where Valhalla wants it to be....
3 Pages (750 words) Case Study

Valhalla Partners Due Diligence

Valhalla's due diligence process seems brilliant from an investor's point of view.... Its due diligence calls identify the TX's ability to compete with all other companies with its most integrated telecommunications management solutions.... However, since Telco Exchange has the provision to help to automate the ordering process, it can make the data available for all parties involved.... The diligence process has given higher emphasis on safe investment to ensure partners privileges....
3 Pages (750 words) Case Study

Legal Aspects of Mergers and Acquisitions in Business

However, no other event seems difficult, complex, or chaotic as the process.... It is critical to identify such contracts earlier in the acquisition process.... This paper focuses on the acquisition of three distinct entities and the effects on operational processes....
6 Pages (1500 words) Research Paper

Due Diligence Standards in the USA and the UK

This essay "due diligence Standards in the USA and the UK" focuses on the examination carried out by investors or their agents into details of a prospective investment of the purchase.... The quantity of due diligence carried out before a prospective acquisition depends on the worth and value of the potential investment.... due diligence also depends on the relative value of the intellectual property to the transaction.... due diligence is important for businesses as it centers on the intellectual property assets of the selling company....
3 Pages (750 words) Essay

William Hill portfolio diligence

I will discuss in detail the research questions that will assist William Hill in acquisition of Stanley Leisure; due diligence need by William Hill is to enable the shareholders with adequate concept of underlying William acquisition portfolio than the prevailing market allocation of betting services.... In the study 'William Hill portfolio diligence' the author discusses the reasons for William Hill's takeover and stipulate the post-takeover performance of the company....
22 Pages (5500 words) Essay

Corporate Legal Framework

From the case at hand, Red & White Limited has been involved in a hastily organized meeting that led to the quick and non-through evaluation of documents prior to the acquisition of Phillip's Glass Property for $75 million.... due to the significance of the conflict of interest principle, the Corporations Act of 2001 integrated statutory rules that made it obligatory for directors to avoid conflicts of interest in carrying out their duties....
7 Pages (1750 words) Case Study

Accompanying Balance Sheet of Frater ltd

I have reviewed the accompanying balance sheet of Frater ltd as of 31st December 2012, and the related statements of income, retained earnings, and cash flows for the year then ended.... A review includes primarily applying analytical procedures to management's financial data and.... ... ... The paper "Accompanying Balance Sheet of Frater ltd" is a brilliant example of a case study on finance and accounting....
10 Pages (2500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us