Forensic Due Diligence remains an integral part of any transaction that aims to strike a finite merger and acquisition deal. Proper and timely usage of the tool not only helps in saving substantial cost of carrying out micro level checks but also helps the other components of due diligence in addressing the threats arising out of the transaction. It also helps the acquirer to address the threats and mitigate the risks in order to pave way of relatively risk free integration process.
Forensic Due Diligence can be defined as a special and focused practice which aims to uncover the risks, if remains undetected may form a substantial part of successor liability post integration. The combined liability may eventually lead to serious consequences like severe financial damage, reputation loss, erosion of trust and shareholder/investor faith, expensive litigation eventually leading to it’s demise.
The two main steps in identifying risks:
1. Identifying key assets, tangible and intangible
2. Identifying threats to these assets.
Role of Biznexxus in Forensic Due Diligence
In the whole process of the forensic due diligence, political nexus and the politically exposed persons play a significant role. Riskpro has developed a unique intellectual property Biznexxus to assess the risk of businesses associated with the politically associated persons.
Role of Auditronix in forensic due diligence
After the collapse of Satyam it was observed that the Auditors play a significant role in the accounting frauds. Riskpro has developed a tool called Auditronix which provides significant information about more than 1000 audit firms in India.