Due Diligence

Due Diligence

In M&A deal flow, after the basic agreement, the both parties conduct the Due Diligence. It can be called DD as the acronyms and covered in various area including business DD, financial DD, legal DD, labor-relationship DD and so on.

For the medium size of M&A the business DD is conducted by the buyer side, the financial DD is conducted by the accounting firm and legal DD is conducted by the law firm.

After the financial DD, the buyer may find the outstanding expenses, accounting exposures and some other financial risk. Without the financial DD, the buyer may pay the over-priced for M&A.

In the M&A process, DD is the necessary process to have the fair transaction for both buyer and seller.

Argentum Partners has the expertize in financial due diligence which is including future taxation, accounting analysis, cash flow and profitability analysis.

For the professional aspect of the transaction character, we have the strategic partnership with Asian wide accounting firm group OneAsia www.oneasia.ac to bring the due diligence to the next level.

Besides the DD’s, it is better for the both parties to aim one direction as the one company. Therefore understanding the company culture and behavior tendency will be the important factor to be successful company after the closing the deal. We recommend the buyer to have culture analysis (Argentum Cultural Feasibility Study) for the target company.

  • Financial due diligence (Optional: Taxation due diligence)
  • Legal due diligence
  • Product due diligence
  • Corporate culture analysis- Argentum Cultural Feasibility Study (ACFS)

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Size of transaction/Target company's net asset book value (US$)
financial DD (US$)
taxation DD (US$)
total (US$)
Up to 10 million 15,00015,00030,000
Up to 20 million 20,00020,00040,000
Up to 50 million 30,00030,00060,000
Up to 100 million50,00050,000100,000
Above 100 million TBDTBDTBD

We also provide the valuation and tax efficiency for the buyers as well.

Size of transaction/Target company's net asset book value (US$)
ACFS (Argentum Cultural Feasibility Study) fee (US$)
Up to 10 million15,000
Up to 20 million20,000
Up to 50 million30,000
Up to 100 million50,000
Above 100 millionTBD