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Due Diligence2022-02-14T18:45:21+05:30

Due Diligence

A Game Plan To Convert Prospects Into Raving Customers

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Overview

As we know that along with bright opportunities, we are surrounded by full of risk, uncertainties, ambiguity, change in policies of government, dicy international trade policies, taking over an existing business or property or any kind of investment is a big challenge. We at FAROL, have a team of professional experts in Finance, Accounts, Marketing, Costing, HR, Legal, Stock Market, Brand Valuation etc . As a team we provide service to our client presenting a clear picture of his ROI (Return on Investment) with the clarity in titles of ownership of everything, assessment of liabilities and assets and future projection of business.

Two imperatives are near the top of every private equity firm’s priority list: selecting the right opportunities, and avoiding surprises. FAROL supports both of these through our strategic commercial due diligence process. How do we help? Our approach to strategic commercial due diligence helps inform our clients’ investment decisions. We provide independent, fact-based analysis regarding a target’s most pressing commercial and operational issues. Within each opportunity, we focus on value creation by conducting deep analysis of the market landscape, securing the customer’s perspective, assessing the competitive dynamics, auditing operations, reviewing the plan for the business, and developing a go-forward value enhancement program. Our approach accelerates the process, maximizes value and reduces buyers’ risks, thereby framing the acquisition for well-structured ownership and eventually, an efficient exit. We use a well-honed strategic commercial due diligence process to deliver the independent validation required for private equity firms to make investment decisions confidently. We combine rigorous analysis with a fact-driven assessment of market dynamics. We conduct in-depth interviews with customers and other market participants and evaluate the competitive landscape to identify opportunities and risks, validate our clients’ investment theses and prepare for exits. We are known for challenging management plans based on objectivity and deep industry knowledge.

Know what you’re buying. Whether it’s a cross-border merger of industry giants, the integration of a small business operating in an adjacent market or a potential joint venture, you have a responsibility to validate your assumptions, and to ensure a deep understanding of the opportunities and risks and the implications for value, before the deal goes through. The stakes are too high to simply rely on the target company’s claims. An important part of any due diligence investigation is to examine the strategic fit. What’s the target company’s market like? Competitive position? Potential to affect the value of your overall enterprise? The answers to these and other questions demand primary qualitative and quantitative research into the business under consideration.

What Problem Are You Trying To Solve?

Occurred Unplanned costs?

The trick with due diligence is to view it as an investment rather than a cost. Although it can seem that due diligence is expensive – and even more so when unforeseen costs arise – the costs of an extra month or two of due diligence are minimal when compared to those that come with buying the wrong company. For this reason, it pays to change your perspective on due diligence from being an operating cost to an investment cost – one which will either lead to a successful acquisition or save your company from making a bad one.

There’s an informal saying in due diligence that “everything that drags gets dirty,” the implication being that the longer due diligence goes on, the more likely things are to become sour between the buyer and seller. While there is some element of truth to this, the goal of due diligence is to provide complete information – not to provide whatever information becomes available in a predefined period of time.

A major challenge of due diligence is knowing what your in-house due diligence team can and cannot do, and then finding the right people to bridge those gaps. A regular accountant, for example, is unlikely to be able to provide the kind of analysis required for a deep-drive into the target firm’s financials. Of course, it could well be within the capabilities of your CFO, but you’ll need them to be honest about their capabilities, as a lack of expertise in any part of due diligence can prove to be highly expensive further down the line.

Poor performance of information & data analysis team?

Incomplete information is a common challenge of due diligence and it does not necessarily mean that the seller is being opaque. It could be a case of bad record keeping or simply an inability to access the information that your due diligence team is requesting. Assuming you believe the gap in information is not a deliberate obstruction of your investigation into the business, the task then becomes making a decision with the information you have.

Why do sunk costs represent a challenge in due diligence? Because all too often the participants in deals go ahead with deals on the basis that they misunderstand sunk costs.If you’ve spent tens of thousands of dollars on due diligence and months of your company’s time, and the deal doesn’t appear attractive – well, due diligence has served its purpose and saved your company millions. To think otherwise, or that, ‘we’ve gone this far, so let’s keep going’ is a challenge that everyone undertaking due diligence is likely to come up against at some stage.

Even a relatively short period of due diligence on a small company can yield a huge amount of new information, virtually all of which will have some bearing on a valuation of the company. This could be anything from a previously unrecognized inefficiency at a manufacturing plant to a potentially damaging upcoming litigation case. Due diligence can throw up anything. The challenge then becomes how to revalue the company on the basis of your findings.

In the same vein, your first clients won’t come easily. You won’t have any reviews or testimonials other than some words of recommendation from your past professional relationships. Chances are, you’ll find your first client through word-of-mouth or circumstantial meetings, so turn to networking to start building your business’s momentum. Even with a large network, you may find your first client to be a strenuous obstacle to overcome. Farol will guide you on how to get your first 100 customers.

What We Provide ?

  • Accounts and Legal Compliance

  • Market Survey and Brand Image

  • Feasibility of Future Expansion

  • Valuation of Assets

Accounts and Legal Compliance

We do system and Audit of Accounts and legal compliance to rest assured that whether all compliances have been fulfilled by the client so far or not . All liabilities like govt dues, creditors, guarantee given to banks and financial institutes.

Market Survey and Brand Image

Any investor would like to see first that what customers think about the product of the company, degree of acceptance of the product etc.so can project the future business and profit

Feasibility of Future Expansion

Any investor will be more interested only if he can see the consistent free flow growth in the business along with maintaining existing business . For future projection of the business, Due diligence service is required to see the possibility of expansion in short and long term

Valuation of Assets

Even while buying a small house, a Certified Civil Engineer gives a detailed valuation report of the property which gives an idea to the bank who is issuing the loan and to the buyer also to make a decision comparing with the market value. This valuation report gives an idea about the age of the property. Same way all assets mentioned in the Balance Sheet 

Expected Key Benefits Of Accounts and Legal Compliance Market Survey and Brand Image Feasibility of Future Expansion Valuation of Assets

Better Qualified Leads

Sales Growth

Unexpected ROI

Increase Brand Value

High Revenue

Brand Identity & Awareness

Marketing Effectiveness

Beat Competition

Accurate Targeting

Real Time Analytics

Our Consulting Process

Business introduction

First, we deeply understand your business, process, product, market segments, challenges, existing infrastructure and manpower, finance availability, your vision, and mission, which helps us to provide the possible relevant solutions. By understanding the primary business we discuss some standard procedures or methods that are usually used in the market. This stage of consulting is very valuable for both because in this stage we’ll understand how you grew up or how the company grew up. We understand all the basic information about your business and go to the second stage of the process.

1

Understand Existing Problems

This is the stage of secondary diagnosis. Our focus is on analyzing the problem and the purpose. Cooperation between us and the business blooms at this stage. We have to find out the performance patterns of the organization and an assessment of the requirements and resources related to the business transformation should be carried out. We spent time with directors, managers, and the team, for understanding the current situation & the existing problems of the organization. Data collection is a primary task at this stage since it relates to the quality of the prospective solutions.

2

Find The Solution

By understanding the problems, our team will continue working on it and find the best solution for your organization. We strictly believe that, Just about any problem you have to deal with has more solutions to it than the one that you think of first. So, it is best to develop a list of alternate solutions that you and your team can assess and decide which one will be the best for the particular problem.Then we rank those solutions based on efficiency, cost, long-term value, what resources you have and that you can commit to the solution of the problem. Then, look at every one of those solutions carefully and decide what you believe to be the best solution to this problem at this time.

3

Executions

At this stage we have proper planning and have a solution to the existing problems & challenges. We put this solution into the process. Our team constantly monitors the execution, and constantly with you. Implementing the solution you decide on can include creating an implementation plan. It could also include planning on what happens next if something goes wrong with the solution if it doesn’t work out the way you thought it would. Implementation means that everyone on your team knows and understands their part in making the solution work, that there are timelines for execution, and also that you have a system in place to track whether or not the solution has corrected the problem.

4

Getting Feedback

Direction is more important than speed. Based on the above points a detailed step by step planning is required for the action to be taken within a time limit with a specific budget without affecting ROI. First we identify the problem then plan the best solution to overcome the problem and we execute the planned solution. During this process we need feedback from everyone who is involved in this process, so we’ll know the effectiveness of the solution and where the improvement is needed. So we can plan accordingly and apply it to the next solution.

5

Apply Changes & Execute Again

According to the received feedback, we’ll do the necessary changes in the decided process and implement with the new changes. It helps to overcome the existing challenges. We develop a system that helps you and your organization to follow the standard procedure and make your work easy. After the implementation of the problem we periodically do a system audit to see that the organisation is system oriented and not man oriented. Also find the new challenges or problems that you faced and find their reliable solutions and implement it as the same.

6

Who can get Counseling ?

  • Small & Medium Enterprises
  • Individuals & Team
  • Industries

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is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions

is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions

is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions

is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions

is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions

  • Business Owners
  • Sales & Marketing Leaders
  • Sales & Marketing Executives
  • Independent
  • Consultants
  • Students

is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions

  • Pharmaceutical Industry
  • FMCG Industry
  • Metal Industry
  • Textile Industry
  • Plastic Industry
  • Ceramic Industry

is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions

Mode of Counseling

  • Individual Counselling Individual Consulting
  • Group Counselling Group
    Consulting
  • Seminar Counselling Seminars
  • Webinar Counselling Webinar
  • Workshop Workshops
  • Keynote Speaking Keynote Speaking
  • Tele Counselling Tele Consulting
  • Guest Speach Guest Speach

Individual Consulting

These sessions are targeted to focus on understanding the current problems & opportunities and find out the best possible solutions. These are individual sessions of 60 minutes each covering all the important topics. The number of sessions may vary on the requirement and understanding of the individuals. The whole consulting is divided into certain segments, so we can properly understand your situation and get a plan accordingly to raise up.

15,000/- Per Counseling

Group Counseling

Group Counselling sessions are conducted with a minimum of 10 personalities. These sessions will be taken in a collective atmosphere where all the topics will be explained in different sessions in one day. The number of sessions may vary on the requirement and understanding of the team. In Group Consulting we also want specific attention from your side so that we can understand better and offer specific solutions.

15,000/- Per Counseling

Seminars

This will be of two hours at the time and venue convenient to the organizer and to the speaker. This will cover the overview, need & benefits, current challenges and way of the implementation of pre-selected topics. The speaker shall speak for one and half hour and the rest half an hour will be dedicated to the audience for question and answer session.

15,000/- Per Counseling

Webinars

This will be of two hours conducted ‘online’ from the comfort of the homes of the audience on the date and time fixed. This will cover the overview, need & benefits, current challenges and way of the implementation of pre-selected topics. The speaker shall speak for one and half hour and the rest half an hour will be dedicated to the audience for question and answer session.

15,000/- Per Counseling

Workshops

This will be of a duration of one day with breakfast, lunch included and with full of activities. This will be conducted for a minimum of 10 personalities. The entire sessions of consulting will be covered in one day. These Workshops can address common problems or issues that business professionals may face on a regular basis. All the participants can share their insights and thoughts on how to resolve the problem, which can offer a fresh perspective when dealing with the problem.

15,000/- Per Counseling

Keynote Speaking

On invitation from any organization or institution, our speaker shall attend and deliver the speech on the topic defined. The time duration will be as defined by the organizer.

15,000/- Per Counseling

Tele Consulting

This will be the same as individual consulting sessions. There shall be sessions of 60 minutes each. The number of sessions may vary on the requirement and understanding of the individuals. The individual and the counselor will have a conference through video/audio call and conduct the sessions.

15,000/- Per Counseling

Guest Speach

The farol shall invite prominent guest speakers on certain occasions for sharing their knowledge, experience and observation to the audience. The programme will be designed as per the practice of the guest speaker.

15,000/- Per Counseling

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