DUE DILIGENCE

Due diligence and an audit serve different purposes. An audit provides an independent opinion on financial statements in accordance with applicable auditing standards, whereby due diligence is typically undertaken to support a specific investment or transaction decision. 

Our due diligence focuses on analysing the information available, identifying key risks and observations, and helping clients understand the potential implications for the transaction.

We support buyers, sellers, investors, law firms involved in M&A transactions, and companies preparing for fundraising. Our role can be adapted depending on whether you are evaluating an opportunity, preparing a business for a transaction or seeking an independent assessment before making an investment decision.

Due diligence is particularly valuable before making a significant investment or transaction decision, including merger and acquisitions, business sales, fundraising, strategic investments and other investment decisions. It provides an opportunity to understand the underlying business, identify material risks and test key assumptions before proceeding.

Financial due diligence can assess areas including historical financial performance, revenue and profitability trends, working capital, cash flow, net debt and debt-like items, financial projections and key financial risks or red flags. 

The objective is not simply to review the numbers, but to understand the financial position and matters that may affect the transaction or investment decision.

Our approach goes beyond a checklist of information requests. We apply professional skepticism to identify risks, challenge assumptions and investigate matters that may warrant deeper analysis. We also consider the commercial story behind the numbers, helping clients understand why financial or operational results appear as they do and what those findings could mean for the transaction.

Yes. We regularly work alongside law firms, management teams and other professional advisors involved in a transaction.

Our role can complement their work by providing independent financial, commercial or operational analysis and helping bring relevant findings together for the client's decision-making process. 

Due diligence engagements typically result in a formal report setting out relevant findings, observations and conclusions based on the information made available for the engagement. Depending on the scope, this may include analysis of financial performance and projections, commercial and market consideration, operational processes and risks, intellectual property matters, environmental considerations, key transactions risks and valuation commentary. We work closely with the client and, where relevant, their advisors to explain the findings, highlight matters that may require further consideration and discuss their potential implications for the transaction or investment decision.

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A due diligence report is not an audit or other form of assurance. Our findings are based solely on the information available within the agreed scope of work.

Yes. Biji Deals is based in Malaysia and supports clients across Southeast Asia and the wider region. Our experience includes engagement involving Malaysia, Singapore and Thailand, as well as cross-border work involving India.