Financial due diligence (FDD) is normally performed when a buyer wants to acquire a company to have certainty about its situation. Hence, financial due diligence can be described as a project where a detailed investigation and analysis are performed to assess the key issues may facing the target company.
Tax due diligence targets to examine the types of taxes that the company is subject to, the regulatory examination status, and how regular the company pays its tax liabilities, whether there are any legal disputes over tax issues, the sufficiency of tax provisions that are made, and the estimating the level of provisions that should exist in the financial statements in light of the situation.
FDD & Tax DD are conducted by independent advisors or professionals who can give an independent opinion. This is where Karvy’s role comes to conduct these FDD & Tax DD to its clients in a manner that exceeds their expectations.