A company or individual may require due diligence services for either companies or individuals for a number of different reasons: a merger or acquisition, due to considering some kind of partnership, due to needing an investment, due to needing a key person for a business such as a director, startup audits and so on.

Those finding themselves in this situation may attempt to find information on their own initially, due to this being a very tempting and seemingly free option using search engines. Layman information searches using search engines may, however, turn out to be very expensive if important information is overlooked or missed, or simply misinterpreted.

For that reason, ClearSky Network recommends all our clients to take a more professional approach when due diligence services are needed. The ClearSky Network team is able to provide a number of due diligence services inhouse, and should there be information we are not able to find on our own, we have the connections and network needed in order to find it through a partner, a foreign entity or official entity as needed.

What exactly is due diligence?

Due diligence means investigating a target business or target physical person with regards to business performance, assets, various financial statements, liabilities and key players (if relevant).

A professional due diligence report will also include all benefits and risks of proceeding with a specific transaction, purchase or similar (to be specified in advance, as different transactions and partnerships generally involve different deal-specific risks and opportunities).

The due diligence services required vary greatly depending on the circumstances of not only the company or individual investigated but also of the deal or opportunity in question.

Examples of due diligence services

Some of the most commonly requested due diligence services include:

• Financial due diligence, usually going back a number of years and including projections for the upcoming year if possible, assets, liabilities and suggested cost-cutting measures if relevant;
• Operational due diligence, which includes IT and tech operations;
• Due diligence of specific people, which could be main owners, shareholders, directors or just the entire organizational structure, and suggestions for how the organizational structure could be optimized, if relevant;
• Regulatory due diligence to see if a target company meets all the legal requirements for operating in the chosen jurisdiction/s.

However, depending on the circumstances additional due diligence services may be required, and in some cases, not all of the above services are essential. ClearSky Network always makes sure we recommend only due diligence efforts that are vital to the client’s or transaction’s success in order to avoid unnecessary costs and non-essential and possibly confusing excessive information.

Interested in due diligence services?

We welcome both current and potential ClearSky Network clients to contact us if they have questions about due diligence efforts and how essential they are, or if they already are certain that they wish to proceed with these efforts.

Our team will provide those interested in personalized recommendations for a risk- and opportunity due diligence process in order to make sure everything that is essential and of interest for your specific needs and circumstances is covered.