Our Due Diligence team helps you assess businesses in Dubai and across other emirates in the UAE to provide you with information relevant to making decisions on such transactions.

1. Due Diligence Services in UAE
The global mergers and acquisitions market witnessed massive growth in the
year 2021, with the number of announced deals exceeding 62,000. The value
from publicly disclosed deals was US$5.1tn; higher by 57% when compared
to the year 2020.
There are thousands of mergers and acquisitions deals taking place around
the globe annually, but there is no assurance on the success rates of these
deals. In fact, according to studies, the number of failed deals surpasses the
successful ones. There might be numerous reasons behind an M&A deal
failure, but a majority of businesses cite the lack of due Diligence to be a
major reason for an unsuccessful deal.
Due Diligence plays a vital role in the successful navigation of a business
deal. Due Diligence is an investigation or audit of a potential investment,
product, or key business decision that helps in gaining a deeper
understanding of the target organization or investment and identifying any
potential risks or issues.
Due Diligence methodology in UAE
A Due Diligence services in UAE generally involves the below steps;
Deciding the scope and objective of the due Diligence
Obtaining the required information such as historical audited financials, recent
management financials, business plans, banking and liabilities data,
information on operations, assets, employees from the target company and
analyzing these details
· Understanding the deal drivers
· Organizing interviews and reviewing the policies and procedures
· Onsite assessment and comprehensive walkthroughs where required
· Holding discussions with the management to authenticate findings
· Analyzing the implications of the major findings
· Providing the Due Diligence report highlighting key risks, proposed
mitigants and other recommendations
· Factors to be considered while arriving at the Enterprise Value

2. Types of due Diligence
Financial Due Diligence
Financial due Diligence gives an insight into the monetary status of an entity.
The financial data provided, which includes income statements, balance
sheets, cash flow statements, etc, are examined thoroughly prior to a
transaction.
Commercial Due Diligence
With the help of commercial due Diligence, a buyer can get a clear
understanding of the business based on its positioning in its operating
markets, its quality of management, organizational structure and policies.
Tax Due Diligence
Tax due Diligence provides an independent review of the tax profile of the
target business and helps in identifying tax-saving opportunities and tax risks.
It helps in assessing historical tax exposures and various modes of tax neutral
deal structuring.
Human Resources Due Diligence
HR due Diligence makes it possible to analyze the human capital within a
company, by identifying the qualifications, technical ability and working
initiative of the target firm’s senior management team as well as key staff.
Further, it can also give valuable insights into the company’s culture and HR
practices. Other risks like dependence of the acquiree on key personnel and
impact of a merged structure on such personnel can be highlighted.
Operational Due Diligence
An understanding of the non-financial aspects of the target firm by
investigating the business model and operations is termed operational due
Diligence. This usually includes an evaluation of systems and processes,
review of the existing management team, staffing levels and other HR
operations, or insurance arrangements and risk assessment.

3. Legal Due Diligence
An investor must know beforehand any legal risks or issues associated with
the investment decision such as property ownership, intellectual property and
employment disputes.
Administrative Due Diligence
Admin-related information such as facilities, occupancy rate, number of
workstations, etc must be verified to ensure all operational costs are captured
in the financials.
Asset Due Diligence
Asset due Diligence includes detailed information related to fixed assets and
their locations, all lease agreements for equipment, sales and purchases data
of major equipment, real estate activities, mortgages, title policies, and use
permits.
Customer Due Diligence
Customer due Diligence is the examination and analysis of major customers
by collecting information such as service agreements and related insurance
coverage, existing credit policies, customer satisfaction score, and related
reports for past periods.
Due Diligence is an integral part of any merger and acquisitions transaction,
which helps the management forecast the success or failure of a deal. With
the help of an experienced due Diligence team businesses can recognize
possible risks and potential opportunities. HLB HAMT helps businesses
establish the correct value of a transaction and identify issues and risks if any.

4. Due Diligence Dubai UAE | Due Diligence
Services UAE | Due Diligence Consultants
in Dubai
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates. Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
www.hlbhamt.com