Due Diligence is a key process to evaluate and analyze the situation of a company before making important decisions, such as its acquisition, merger, or investment. This thorough analysis allows identifying risks, validating the information provided, and ensuring that the operation is viable and profitable in the long term.
Why is it important to conduct Due Diligence?
Conducting Due Diligence is essential to minimize risks and make informed decisions. Through this process, the financial, legal, and operational information of a company is validated, detecting possible hidden problems or contingencies that could negatively impact the transaction. In short, it is the tool that will help you avoid costly surprises and guarantee a solid investment.
Types of Due Diligence.
There are different types of Due Diligence, depending on the specific needs of the company. At Metricson, we know very well that not all Due Diligence reports are the same, which is why we carefully segment the different types of reports to maximize their value. These are the different types of Due Diligence we work with:
1. Red Flags or Self-Diagnosis Due Diligence
Ideal for growing companies, this type focuses on identifying and mitigating legal and operational risks that could impact the company’s value. It is especially useful to prepare for investor entry or to maximize value in future transactions.
2. Investment Operation Due Diligence
This type of Due Diligence is essential to evaluate all relevant aspects before closing an investment in a company. It provides a comprehensive view of the risks and opportunities associated with the operation.
3. Sales Due Diligence (Vendor Due Diligence)
Designed from the seller’s perspective, this type aims to provide clear and precise information about the company to potential buyers, speeding up the transaction and reducing risks.
4. Financial Due Diligence
Financial Due Diligence allows evaluating the economic situation of a company, identifying risks and ensuring informed decision-making. In this case, we offer this service in collaboration with our trusted partner, Lean Finance, so you can ensure that your acquisition process is carried out with the greatest security and knowledge possible.
5. Technological Due Diligence
In an environment where technology plays a key role, this report analyzes the technical infrastructure of the company, detecting risks that could affect the scalability and sustainability of the business.
6. ESG + Impact Due Diligence
More and more companies are concerned about the impact of their businesses on society and the environment, while investment funds seek to direct their capital towards sustainable organizations. ESG + Impact Due Diligence analyzes compliance with the requirements established by the Sustainable Finance Disclosure Regulation (SFDR), specifically those set out in articles 6, 8, and 9.
Besides ensuring that companies are eligible for impact funds, this type of Due Diligence evaluates ESG criteria (Environmental, Social, and Governance). In this way, it not only ensures regulatory compliance but also strengthens the organization’s commitment to sustainability and social responsibility.
7. AI + IP Due Diligence
In our Due Diligence report on intellectual property applied to artificial intelligence, we evaluate the legal aspects related to the development and use of these tools in your company. Additionally, we provide the necessary recommendations to ensure their safe implementation and protect the ownership of your rights.
Why is it important to choose the right type of Due Diligence?
Each transaction has unique characteristics and needs. Selecting the correct type of Due Diligence ensures that you will obtain a complete view of the critical aspects of the target company, minimizing risks and maximizing the chances of success in the transaction.
If you are considering Due Diligence for your company or project, contact us for more information, and we will prepare the Due Diligence models that best suit your needs.
If you want to request more information to carry out a Due Diligence, click here.