Due Diligence Assessment

New investment opportunities may arise in which a company or firm needs assistance in determining the risks involved. This type of determination is known as a due diligence assessment. Chikol’s expertise can assist companies, lenders and creditors in determining if there are any risks involved in several different capacities.

When exploring a new investment opportunity, lenders and creditors need to be able to see the investment as a whole, but each part of a business should also be broken down so that the true picture of risk can be determined. A handful of the different areas that Chikol can research and assess include:

• Operational procedures
• Customer retention and acquisition
• Cash flow projections
• Market information, including competition, market segmentation, current positioning and forecasts
• Business model evaluations
• Debt and equity

Chikol understands that when a lender or creditor is considering a new investment opportunity, time is of the utmost importance. Due to this, not only will Chikol perform an accurate assessment of the potential investment, but we will also produce our assessment report within the time required.

Why Is a Due Diligence Assessment Necessary?

When preparing to make an investment, the best money spent is on determining how much risk is associated with the potential investment. With a due diligence assessment, clients have the opportunity to decide if the investment is worth the risk. It also prepares the investor for what changes need to be made or what potential issues may arise in the short term or long term.

At Chikol, our due diligence assessment program focuses on:

• Finance: Accounting, cash flow, accounts receivable, quality of earnings, financial trends, in place financial systems, financial organization and internal audits

• Operations: Assess current employee structure and roles; review facilities, review of intellectual property and current contracts

• Information Systems: Assessment of organization, software lifecycles, third party contracts or services and information security

• Compliance: Assess whether or not regulations and industry requirements are being met

Since every investment is different and unique, Chikol customizes each due diligence assessment that we perform based on client requirements, industry, market conditions and other relevant factors that play a role in completing an accurate assessment.