Alistair Hardie discusses the importance of due diligence processes
In its simplest form due diligence is about taking the time to get to know a person or organisation before entering into an agreement or transaction with them.
It’s tempting to think of due diligence as a process that only happens as part of the purchase or sale of assets and services between businesses. We all do due diligence in our personal lives and probably don’t think of it in these terms.
Buying a property involves due diligence throughout the process from finding a property through to completion. Those of us who use the internet to buy and sell will check the credentials of sellers and buyers before parting with our cash or goods.
We look to our family, friends and acquaintances for recommendations on which plumber or electrician to use. We do this to get as much reassurance and comfort before making a commitment to the transaction.
Where businesses are concerned, due diligence often involves detailed analysis of all financial records and material information that is appropriate and relevant to a transaction.
The purpose of this in depth due diligence is to ensure that the contracting parties enter the transaction with ‘open eyes’ so that the outcome is mutually beneficial.
Achievements, charity work and other happy snippets
Laughable excuses for persisting
Spent 56 years at Schroders
Warns on profits