By Nida Fatima. 16 September 2020
How should I not make due Diligence a headache?

Preparing for due diligence can be challenging, and when it finally occurs most business owners are caught unprepared – mostly due to lack of preparation and experience in the field. Also, industry veterans and hard-nosed businessmen will find themselves in unfamiliar waters when it comes to answering the laser-sharp questions about their organization from a due diligence consultant. It needn't be that way though. 

Ready for due diligence-Looking inside
Starting with your internal policies always is a good idea. This involves re-looking at structures – either in place or missing in the organization structure. Review all of the management's work contracts, too. This gives you a fantastic opportunity to streamline your old processes and implement new policies. To get a great image of where you're standing on a monthly basis, prepare a report from MIS (Management Information System) at least a few days later. This may look like a time- and money-consuming exercise, but it might actually prove to be a game-changer in terms of smooth sailing through the due diligence process. It could also provide some useful insights for the future.

Getting prepared for due diligence-Looking out
On the outside front, you should begin to make a checklist of all registrations that may be necessary for your business. Being updated with statutory compliance is also crucial. If all of this seems a bit complex, reaching out to a trusted financial advisor might be reasonable. This is where you need to seriously consider enlisting the checklist as your virtual assistant with the help of an accountancy service provider or a one-stop portal. Although it may sound like a single person helping you out, it is generally a team of experts – financial advisors and strategists with profound field expertise. They'll also help you pass your sales contracts, licenses.  As, well as other legal documents fine-toothed with a comb.

Moving to Key Performance Indicators (KPIs), the Consultant for Due Diligence is expected to be involved in how the business makes profits. Take a deep dive into marketing spending ROI (Return on Investment) and segregate & evaluate your clients – B2B vs B2C and organic vs. inorganic. Find out the marketing networks from which they come, how much money they spend on you, and so forth. There is that little information that counts.
Most significantly, recognize and rectify possible time delays or shortcomings. If you can't rectify all of those problems, you'll have a decent argument ready and a straightforward plan for how you're going to change the same thing going further.

The trick is never to get caught off guard by the surprises the consultant could throw at you with due diligence. The only way to guarantee this is by completing your assignments well in advance, or by getting someone eligible to do it for you. A little bit of planning can really go a long way to securing the contract!