Audit & Assurance ServicesEase Consultancy
Audit Services

Due Diligence

A structured review of financial, tax, legal, commercial and operational information before an investment, acquisition, lending decision, restructuring or other material transaction.

Due Diligence

Pre-investment & transaction review

We organise and analyse available records against an agreed scope, identify material issues and present findings so decision-makers can assess risk before committing capital or entering a transaction.

Service Details

What Due Diligence Means

Due diligence is a decision-support exercise. It is not a guarantee that every hidden issue will be discovered or that a transaction will succeed.

What this service can cover

  • Financial statements, accounting records and quality-of-earnings review
  • Revenue, margins, cash flows, working capital and debt analysis
  • Tax, statutory filings and material compliance review
  • Material contracts, customers, vendors and business-model review
  • Contingent liabilities, related-party matters and identified exposures
  • Operational risks, key controls and management representations
  • Issue tracker, risk classification and management-ready findings
2026 context:
SEBI's investor guidance describes due diligence as comprehensive analysis before an investment and highlights business model, financial health, cash flows, income statement, balance sheet and other investment information as matters investors should examine.

Who can use it?

Businesses: useful before an acquisition, investment, merger, sale, major borrowing, strategic partnership or other high-value transaction.

Investors / lenders: useful for understanding the target's financial position, obligations, compliance exposure and commercial risks before committing funds.

Individuals: relevant where an individual is personally making or guaranteeing a material investment or transaction. It is generally not a routine requirement for ordinary personal spending or small everyday decisions.

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Important: The exact scope depends on the transaction, industry, size, records available and specialist requirements. Legal, tax, technical, valuation or regulatory specialists may be required where the issue falls outside a financial/operational review.
Business Value

Why It Matters Before a Transaction

A disciplined review can turn scattered documents into a structured risk picture before money, ownership or contractual obligations change hands.

How it can help a business

  • Identify financial or operational issues before an investor or buyer discovers them.
  • Prepare supporting records and explanations for lender, investor or acquirer review.
  • Improve negotiation readiness by identifying liabilities, gaps and commercial dependencies.
  • Prioritise corrective actions before closing or signing a major transaction.
  • Create a documented risk trail for management and transaction advisers.

When it may not be necessary

  • Routine low-value purchases or ordinary operating decisions.
  • Transactions where there is no meaningful financial, ownership or contractual exposure.
  • Situations where the proposed scope duplicates a specialist review that already addresses the relevant risk.
  • It should not be treated as a substitute for statutory audit, legal opinion, valuation or technical due diligence where those are required.
Risk Perspective

What Can Happen If You Skip It?

Skipping due diligence does not automatically make a transaction wrong, but it can reduce the information available before the decision becomes difficult or expensive to reverse.

Potential consequences for a business

  • Unexpected liabilities, debt or working-capital pressure may emerge after the transaction.
  • Tax, statutory or contractual issues may require additional remediation or negotiation.
  • Weak records can reduce confidence during investor, lender or acquirer review.
  • Overstated revenue, margins or business assumptions may affect valuation and deal economics.
  • Post-transaction disputes can become harder to manage when facts were not documented before closing.

Decision, not guarantee

SEBI's investor guidance recommends checking fundamentals and the risk-return profile before investing. Due diligence should therefore be viewed as an information and risk-assessment layer—not as a promise of profit or a guarantee against loss.

For material transactions, findings should be reviewed with the appropriate legal, tax, financial, valuation and technical advisers.

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Practical Process

How the Review Works

The exact workflow is tailored to the engagement, but a practical review normally follows these stages.

Typical workflow

  • Define scope: transaction purpose, entities, period, materiality and required specialists.
  • Collect records: financial, tax, statutory, contractual and operational information.
  • Validate: compare records, explanations and available supporting evidence.
  • Assess risks: identify gaps, unusual items, liabilities and dependencies.
  • Report: present observations, priority issues and recommended next actions.

Typical information requested

  • Financial statements, ledgers, bank information and management accounts.
  • Tax returns, notices and material statutory records.
  • Loan agreements, security details and material commitments.
  • Major customer/vendor contracts and related-party information.
  • Corporate, ownership and other transaction-specific documents.
2026 Official Reference

Regulatory & Professional Context

These references provide context for due diligence. The applicable requirement depends on the entity, transaction and governing framework.

2026 update note: These official references do not mean every business or individual is legally required to commission a separate due-diligence engagement. Whether a review is mandatory, expected or simply commercially prudent depends on the transaction and applicable law/regulatory framework.
Final Check

Before You Commit

For a significant transaction, ask whether you have enough verified information to understand the downside—not only the expected upside.

Good due diligence asks

What are we buying? What obligations come with it? Are the financial numbers supportable? What compliance or tax exposures exist? Which assumptions are still unverified? What should be resolved before signing?

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Professional limitation

A due-diligence report is based on the agreed scope, records made available, procedures performed and applicable professional requirements. It cannot provide absolute assurance that every fraud, error, liability or future event will be identified.

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