Deloitte has extensive experience in all aspects of due diligence and has been appointed to many major transactions in South Africa, both by corporates and private equity firms.
A due diligence is an essential part of the review and assessment of any investment opportunity, disposal, reorganisation or listing of a company. The scope of the due diligence will depend on the size and scale of the transaction and the surrounding risks.
The due diligence will often comprise financial, tax, legal, IT, HR and commercial due diligence reviews. Deloitte has a proven methodology to manage multi-disciplinary teams. Our multi-disciplinary approach ensures that all teams produce one final report, and report into one key manager. We have access to industry experts both within and outside Deloitte.
The key findings of the due diligence review includes factors that will impact the pricing of the transaction, possible warranties that should be sought by the buyer/ seller, and potential post acquisition integration issues.
Our team comprises of 20 professional staff led by three Partners.
Key Service Offerings
- Buy side due diligence
This enables the purchaser to obtain a comprehensive and expert assessment of the target’s business history, its strategic and financial pulse and future projections and prospects. The primary focus is on issues that could affect price and the sale and purchase agreement.
- Vendor due diligence
A vendor initiated due diligence is an independently prepared report used as part of the process of selling a company or one of its divisions and is recognised internationally as a pre-requisite for major disposals where competitive bids will maximise value.
- Vendor assistance
Vendor assistance offers any combination of a number of value-added services, currently including accounting advisory, carve out, data room support and project management and aims to provide on-going support to a company that is considering the sale of all or part of its business.
- IPO readiness reviews and IPO assist
The Deloitte IPO Readiness team, using our IPO diagnostic tool, can quickly assess a company’s readiness for IPO and provide detailed practical recommendations built into a draft IPO timetable. We are further able to provide expert and independent advice, provide secondment personnel, undertake the project management role or assist with particular workstreams as necessary.
- Long and short form reports for listing purposes
Independent reports offer a detailed financial assessment of a company that is looking to list on a stock exchange. The objective is to identify any issues that could impact on the listing and to provide suggestions as to how those issues might be resolved efficiently prior to listing.
- Exit readiness reviews
Exit readiness reviews enable the efficient execution of a sale, and aim to maximise the deal value for the seller by anticipating risks and issues that might arise and potentially disrupt, or lower the value of a deal.