Financial Due Diligence &
Business Valuation
Every transaction is different. Whether you're making an acquisition, divestiture, or strategic alliance, or raising new capital, you need to know you’re getting the maximum return on your deal.
The primary purpose of due diligence therefore is to mitigate risks, ensure legal compliance, and contribute to effective decision-making by providing a detailed understanding of the matter at hand.
In 1998, Daimler-Benz merged with Chrysler without conducting proper due diligence, relying solely on advice from Goldman Sachs to finalize the deal rather than identify potential issues. Board member Jurgen Hubbert admitted that “there was no due diligence.” As a result, Daimler-Benz lost about $36 billion, a loss that could have been avoided with thorough research.