The Importance of Compliance Due
Diligence in Companies Located in the UAE
01
Identifying Risks and Risk Mitigation To comply with due diligence is to reveal possible risks among the partners to the transaction such as a concealed liability, obligation of contract or a violation of compliance. In the proper event of scrutiny, businesses can come to know of these risks that may not come into sight immediately, to be more prepared to deal with them by making informed decisions or by negotiating the changing of the terms of the agreement to relieve these risks.
02
Compliance with Government Regulation the UAE has certain laws and regulations that must be followed by businesses in areas such as taxes, labour law, specific sectoral rules, and other such matters. Among the indispensable measures is being compliant with the set regulations to avoid any legal implication. We expect our risks due diligence services to be inclusive of a profound review of the target company’s compliance status in the UAE, which will help businesses to stay on the right side of the law.
03
Proper Valuation and Financial Transparency One of the principal purposes of due diligence is to ensure the credibility of the financial statements and valuation of the target company. This includes the evaluation of the income, expenses, assets, and liabilities. Our team at Vigor Accounting & Taxation is certifying that the financial statements are correct, thus enabling buyers or investors to bargain on fair terms and avoid paying more money than what the transaction is worth.
04
Strategic Choices Due diligence gives the specific data necessary for strategic decisions regarding the subsequent prospects of the company after the completion of the deal. Purchases of other companies, new launches, or any alterations to business plans, for instance, would be successful if the work is done in the right way and if the transaction’s strengths and weaknesses are well understood.
