Financial DD
Revenue quality, QoE, working capital, debt and contingent liabilities. Core for almost every M&A and investment deal.
BUSINESS DUE DILIGENCE
Business Due Diligence Registration
Pre-transaction investigation for M&A, investments, acquisitions and joint ventures. Financial DD and QoE, legal and regulatory review, tax DD and commercial assessment. Risk matrix and confidential report in 14–45 working days. Uncover risks, validate numbers and support better deal terms.
DedicatedExpert Assistance
14–45 DaysTypical Delivery
50–200 PagesConfidential Report
M&A · INVESTMENT · JV
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SAMPLE
Business Due Diligence Certificate
Government Authority / MCA — sample official certificate
Illustrative sample. Your official certificate is issued after approval.
01
Pre-Transaction Risk Check
Systematic review of financial, legal, tax and commercial risks before you commit
02
8 DD Types
Financial, legal, tax, commercial, operational, HR, IT and environmental
03
14–45 Working Days
Depending on scope, data readiness and deal size
04
Deal Impact
Findings often influence pricing, warranties and structure by a material margin
OVERVIEW
What is Due Diligence?
Due diligence is a systematic investigation and risk assessment of a business conducted before an acquisition, merger, investment or partnership. It evaluates financial health, legal compliance, tax positions and operational risks to inform transaction decisions under Indian corporate law.
DD typically examines 3–5 years of financial data, material contracts, regulatory filings and contingent liabilities. The output is a confidential report (often 50–200 pages) with risk ratings and recommendations. Frameworks include the Companies Act (mergers), SEBI SAST (listed acquisitions), FEMA (cross-border) and the Competition Act (combinations). Buyers, investors, lenders and JV partners use DD as their primary risk-mitigation tool.
Governing Frameworks
Companies Act · SEBI · FEMA · CCI
Processing Time
14–45 working days
Report Length
50–200 pages (typical)
Users
Buyers · Investors · Lenders · JVs
TYPES OF DD
Eight Primary Categories
Legal DD
Contracts, litigation, IP, corporate structure, FEMA and regulatory compliance. Usually paired with financial DD.
Tax DD
Income tax, GST, transfer pricing, pending assessments and tax contingencies under the Income Tax Act.
Commercial DD
Market position, customer concentration, competitor landscape and growth drivers.
Operational / HR / IT
Processes, supply chain, key people, ESOP, labour compliance, tech stack and data protection (DPDP).
Environmental / ESG
Pollution control, clearances and ESG factors where sector or lender requirements apply.
WHEN NEEDED
Typical Use Cases
Acquisitions & M&A
Buyers validating the target before SPA and closing. Findings shape price, warranties and structure.
Investments (Angel / VC / PE)
Investors assessing equity opportunities, burn, unit economics and legal/tax cleanliness.
Joint Ventures
Partners evaluating the other party’s business, contracts and compliance before forming the JV.
Lending & Startup Readiness
Banks/NBFCs for credit assessment; founders preparing DD packs for funding rounds.
PROCESS
How a DD Engagement Runs
1. Scope & NDA
Define financial, legal, tax and commercial scope. Sign confidentiality agreements and set data-room access.
2. Data Collection
Request financials (3–5 years), contracts, filings, tax records, cap table and operational data.
3. Analysis
QoE, working capital, debt, contingent liabilities, legal/tax compliance and commercial review by domain specialists.
4. Risk Matrix
Identify deal-breakers, high/medium risks and recommended SPA protections or price adjustments.
5. Report & Support
Deliver confidential DD report; support SPA negotiation points and optional post-DD integration advisory.
DD REPORT
What You Receive
Executive Summary
Key findings, deal-breakers and overall risk rating in a concise form for decision-makers.
Financial / Tax / Legal Sections
Detailed analysis of revenue quality, liabilities, compliance gaps and contingent exposures.
Risk Matrix
Prioritised risks with severity and recommended mitigations (warranty, indemnity, price chip).
Confidential & Actionable
50–200 page report under strict confidentiality; usable for SPA negotiation and board approval.
RED FLAGS
What DD Often Surfaces
Revenue Quality
One-time items, related-party sales, channel stuffing or concentration that inflate apparent growth.
Hidden Liabilities
Contingent tax demands, under-provided litigation, off-balance guarantees and unpaid statutory dues.
Compliance Gaps
ROC, GST, TDS or labour non-compliance that can crystallise into penalties post-closing.
IP & Contracts
Weak IP ownership, change-of-control clauses or key contracts that do not transfer cleanly.
WHY CHOOSE US
Why Corporate Mart for Due Diligence?
Multi-Discipline Team
Financial, tax and legal specialists so core DD types are covered in one coordinated engagement.
Deal-Oriented Report
Risk matrix and SPA-ready points so findings translate into price, warranty and structure decisions.
Strict Confidentiality
NDA-backed process and controlled data-room handling for sensitive M&A and investment work.
Clear Timeline
14–45 working day delivery window based on scope, so you can plan SPA and closing milestones.
Scope → Data Room → Analysis → Risk Matrix → Report
FAQ
Frequently Asked Questions
A systematic pre-transaction investigation of a business covering financial, legal, tax and commercial risks before an acquisition, merger, investment or partnership. The output is a confidential risk assessment report that informs deal decisions.
Eight primary types: financial, legal, tax, commercial, operational, HR/people, IT/technology and environmental/ESG. Most M&A deals need at least financial and legal DD combined.
Typically 14 to 45 working days depending on scope, data readiness, number of entities and deal complexity.
Buyers and acquirers, investors (angel, VC, PE), JV partners, lenders (banks/NBFCs) and founders preparing for fundraising.
An analysis of how sustainable and high-quality reported earnings are — adjusting for one-offs, related-party items and accounting policies so buyers see normalised earnings.
Statutory audit opines on true and fair view of financial statements for a past period under the Companies Act. DD is a forward-looking, deal-focused risk assessment for a specific transaction and is not a substitute for audit.
Executive summary, detailed financial/tax/legal (and other scoped) sections, risk matrix with prioritised findings and recommended mitigations. Length often 50–200 pages depending on scope.
Packages start tailored for a defined scope. Larger, multi-entity or cross-border engagements are quoted based on complexity. Scope is agreed before work begins.
