Introduction
Over the past few years, Capital Corp has developed expertise in conducting professional Due Diligences connected with a wide variety of situations.
Why a Due Diligence?
The "Due Diligence" is a process whereby Capital Corp seeks sufficient information about a business entity to reach an informed judgment as to its value for a specific purpose.
A Due Diligence can also be performed in a wide variety of other situations such as:
- A Firm considering a potential acquisition
- An Investment Banker considering underwriting a public security offering or promoting a Private Placement
- A Banker considering the making of a loan
- A Lawyer preparing an offering statement or a merger proposal for a client
- An Appraiser who has been retained to estimate the value of a business unit
- A Business Broker offering a company for sale
- A Public Accounting Firm in conjunction with an audit performed at the request of a potential buyer or in support of a security offering
- A Security Analyst preparing a buy, hold or sell recommendation on a public security
The Due Diligence investigation is normally carried out with the knowledge and cooperation of the management of the entity being investigated.
Should Capital Corp be mandated to execute a Due Diligence, either to realize an in-house transaction or be appointed by a third party in connection with the situations above-mentioned and/or other situations, Capital Corp will thoroughly review, without being limited to, the following activities of the subject entity:
- Overview of entity
- Capitalization and ownership
- Organization and management
- Relationships with outside organizations
- Description of products and/or services
- Revenues and market share
- Marketing operations
- Customer service
- Inventory control and purchasing
- Production
- Physical distribution
- Computer, communications and information systems
- Financial management
- Legal affairs and litigation
- Security and safety
- Human resources
- Public relations
- Corporate development
- Description of fixed assets
- Land and buildings
- Vehicles, equipment and tooling
- Introduction to financial analysis
- Balance sheet analysis
- Current assets
- Non-current assets
- Liabilities
- Net worth
- Income statement analysis
- Revenues
- Cost of goods sold and gross margin
- Operating expenses
- Operating income
- Non-operating and nonrecurring items
- Income taxes
- Net income
- Capital expenditures
- Cash flow
- Financial ratio analysis
- Income statement projections
- Balance sheet projections
