Financial due diligence is the systematic investigation of a target business's financial position, historical performance, quality of earnings and key risks, conducted by an independent party on behalf of a buyer or investor prior to the completion of a transaction. In the UAE, due diligence must extend beyond the financial statements to encompass the tax compliance history under both VAT and the new corporate tax regime, the free zone or mainland regulatory position, the completeness of accounting records, and the accuracy of the financial representations made by the seller.
CashLaw Global conducts financial and tax due diligence for UAE acquisitions, investment transactions and joint ventures. Our financial due diligence covers quality of earnings analysis, historical financial performance review, working capital assessment, debt and debt-like item identification, off-balance-sheet exposure review and key financial risk flagging. Our tax due diligence covers VAT compliance history, corporate tax registration and filing status, FTA audit history, transfer pricing arrangements and any identified tax exposures.
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Book Free ConsultationAn FDD review analyzes the target company's historical financial performance to verify the quality of its earnings (EBITDA authenticity), assess the accuracy of its balance sheet assets, and identify hidden or unrecorded corporate liabilities before a deal is finalized.
It evaluates the target company's historical compliance record, looking for unpaid VAT liabilities, unfiled Corporate Tax returns, incorrect Transfer Pricing practices, or open FTA audit exposures that could pass to the new owner after the acquisition.
We organize your confidential corporate documents into structured, multi-tier folders, implement strict granular access permissions for prospective buyers and legal teams, and monitor tracking logs to ensure maximum security throughout the due diligence process.