Due diligence is a process in which a company is required to transparently provide information to an entity interested in its operations. In the world of tech and startups, due diligence typically occurs in the context of company sales, mergers, fundraising, IPOs, and more.

At Danoy, as an external finance department, we have successfully participated in numerous due diligence processes on behalf of our clients. How do we manage to successfully meet them each time?

Our secret is that we don’t wait for a due diligence request. We work routinely in a highly organized manner, according to protocols we’ve developed over the years. We organize all our clients’ financial information in a highly structured and readily accessible manner. Thus, when company management announces that due diligence will soon be conducted, we can respond effectively and relatively quickly.

A significant part of the effectiveness of our working method is that we have successfully completed many complex due diligence processes. We know what data most parties interested in due diligence are interested in, and we prepare them in advance. For example, we know that many parties are interested in topics such as transfer pricing, US tax calculations, agreements with customers and employees, and more. In addition to these, we provide highly organized periodic reports, profit and loss analyses, cash flow reports, and other financial information that we collect and analyze routinely.

Thanks to the precise preparation we perform as part of our ongoing work, when we receive instructions to prepare for due diligence, we receive the list of questions from the interested party regarding our client – and we can relatively easily find all the relevant information.

If you also want your company to be ready for due diligence before fundraising, acquisition, or any other financial event, contact us.