At KSG, we see Due Diligence as doing our homework thoroughly when our clients are contemplating a major outlay such as buying a business or new premises. It sounds simple enough, but it requires a deep-dive into every aspect of the situation – from the books to the customers to competition.

Some things we always look for include:

• A healthy cash flow
• Are profits going up or down?
• Where are the revenue streams?
• How reliable are the financial projections?
• What multiplier is it asking?
• How big is the market – and is it growing?
• Are there any major new competitors?
• Are physical assets valued accurately?
• Are there any hidden liabilities?
• ASIC and other documentation
• Tax position
• Financing

Major investments have so many variables to consider, and thorough due diligence is the best way to reduce risk. Please involve us in your decision-making.