Business Due Diligence Indonesia

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business due diligence Indonesia

Buying a Business

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Due Diligence Summary 

When buying an established business it is vital that the prospective business owner examine the business in detail. Business Due Diligence Indonesia (BDDI) specialises in this process. Due diligence is generally conducted after the buyer and seller agree in principle to a deal, but before a binding contract is signed.

Conducting due diligence is the best way for you to assess the value of a business and the risks associated with buying it. Due diligence gives you access to important and confidential information about a business. There is also often a time period specified in a letter of intent.

With this information you can assess the business’s reputation, political exposure, financial position and identify any other risks. It is also an opportunity to have any questions answered  about the business. The due diligence process ensures that you get good value for a business. BDDI can be the difference between buying a business that makes you money and buying a business that costs you money.

Due diligence can be performed with different partners such as a lawyer and accountant. Business Due Diligence Indonesia (BDDI) can also assist and play a crucial role in gathering information that is not normally in a company’s “books”. BDDI does this through media research (mainstream and fringe Indonesian press) and source interviews. We also examine other areas of concern such as corruption, any previous or on-going legal disputes, and other issues of reputation. 

These additional elements play a critical role in your decision making process to add to the more common coverage such as review of finances, credit, meeting minutes, audit reports, existing contracts, intellectual and fixed assets etc.  

Warning Signs for the Buyer

You should be cautious of sellers who:

  • have a negative history and reputation,
  • have scandals associated with them, 
  • do not disclose important information (e.g. their reasons for selling, financial statements, licences and permits, staff contracts),
  • won’t agree to a trial period or enough time to conduct due diligence (you will need at least 30 days),
  • won’t introduce you to their suppliers, landlord or estate agent,
  • are involved in legal proceedings,
  • are keen to close the deal quickly,
  • have a questionable credit record and history.

For more information on how Business Due Diligence Indonesia can support you please contact us. BDDI can also recommend Investigation companies in Indonesia such as Indonesia Private Investigation Agency and Bali Eye Private Investigation Agency.  

What is Business Due Diligence?

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Due diligence is basically a process of in-depth investigation completed by a business or outsource to a professional company such as Business Due Diligence Indonesia. The research is carried out prior to starting an ongoing business or employment relationship or signing a contract. The aim of due diligence is to identify any potential problems, unexpected liabilities and basically mitigate any risks.

Advantages of Engaging Business Due Diligence Indonesia

Business Due Diligence Indonesia (BDDI) have a proven track record of due diligence in Indonesia. We also have a unique network of sources that offer intelligence that just can’t be found online or n books.

Conducting due diligence is a valuable and key risk management tool used for buyers and businesses alike. BDDI’s thorough due diligence investigations will allow clients to make informed decisions and avoid surprises at the end of a transaction. It could save you thousands and thousands of dollars.

Due diligence investigations empower buyers through making them aware.

Conducting Due Diligence

There are different ‘levels’ of due diligence (‘hard’ and ‘soft’). BDDI offers the full range from record retrieval and adverse media research to the more time consuming deep source interviews, regulatory and litigation checks and site location verification visits. The scope of due diligence is dependent on the type of transaction, any perceived risks, and the client’s needs.

The most common transactions that call for due diligence include:

  • purchasing a business
  • mergers and acquisitions
  • entering into a partnership
  • entering into a major contract

Buyers have the right to look at the records, assets, and operations for a business before committing to purchasing or entering into a partnership. The result of a due diligence exercise should be a complete story of the target company (or partner). This story can include a range of information within the scope of the research such as financial, commercial, operational, reputational and legal position of the target business or partner.

For more information on how Business Due Diligence Indonesia can support you please contact us. BDDI can also recommend Investigation companies in Indonesia such as Indonesia Private Investigation Agency and Bali Eye Private Investigation Agency.