Due Diligence (DD) put simply, is an investigation or audit of a target by a buyer, to evaluate historic performance and future potential. However, more conventional approaches relying solely on past documented performance of the assets being acquired, can sell buyers short. It is critical to evaluate the whole supply chain in which the target is merely a single entity.
Hard DD follows a pro-forma, lookback approach, usually involving legal and financial information on a target. While this formal approach is important, it usually provides very little insight into the future operational or commercial capacity and value generation potential of the target. The addition of Technical Due Diligence (TDD) and Commercial Due Diligence (CDD), which include the focus on soft areas of the target, should provide much deeper operational and strategic insights. This is particularly critical in the domain of private firms, which are off-limits from the scrutiny of publicly quoted exchanges or stock markets.
The primary objectives of DD include:
- To identify key internal & external risks
- To validate & support valuation process
- To identify integration issues & requirements
Due diligence experts
Due Diligence offers a comprehensive view into an investment target’s full potential and risks and is crucial for any agribusiness venture. At Farrelly Mitchell, we conduct comprehensive and holistic due diligence, covering all commercial, technical, operational and sustainability aspects of a target.
In addition to our due diligence services, our commercial and technical experts also support risk analysis & management, feasibility & financial modelling, strategy & execution, value creation & implementation, and much more. We boast a track record of success supporting major investments across various agrifood industry including dairy, livestock, textiles & fibres, poultry, and much more. With our support, you can make informed decisions and ensure successful mergers, acquisitions, and market entries.
