A due diligence report is prepared when investors are interested in participating in rounds of investment. Due diligence is carried out prior to a purchase process or a change in a company's governing body.
Due diligence is carried out prior to an information-gathering process. It is usually performed by the buyer to make an in-depth assessment of the compliance, risks and contingencies of the company being acquired, as well as its financial position. Its purpose is to obtain the information required for the purchase; the findings may affect both the company's value and the terms of the agreement.
In practice, due diligence is usually approached in a comprehensive manner, with an analysis undertaken of every area of the company as a whole. However, we also conduct specific legal, tax, accounting, financial or employment audits according to a client's particular needs.
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However, these timeframes may vary significantly depending on the size of the company, the depth of analysis required and the availability of the information provided by the company under review.
Due diligence is often essential in acquisitions or rounds of funding. If irregularities are detected, they may affect the amount received. In other cases, it is advisable so that the parent company can ascertain how well its subsidiaries are complying with local regulatory obligations.



