In today's business environment, traditional due diligence is no longer sufficient to maximize long-term shareholder value. Companies and investors looking outside their core business or sector for opportunities to optimize their portfolio or gain access to new technologies and markets need a comprehensive and holistic view of due diligence. Limiting due diligence to financial aspects is no longer sufficient and could expose companies to unforeseen risks and miss value creation opportunities. Investors may overlook improvements in company performance that could bring long-term financial returns.
The future of due diligence is closely linked to data analysis and modern technologies
In our study "Future of due diligence", our experts analyze what an expanded due diligence can look like that takes into account a broader spectrum of risks and identifies performance improvements. This requires new skills, such as advanced data analytics and technology, as well as in-depth industry specialization. To determine the value of a company, decision-makers need clear insights into a company's financial and operational levers.
Christoph Kaiser
Partner, Deal Advisory, Head of Transaction Services
KPMG AG Wirtschaftsprüfungsgesellschaft
Digital assets are becoming increasingly important
Cyber security is an aspect that should not be missing from an extended and modern due diligence process. How secure is the data of companies that are to be purchased? This question did not play a major role some time ago. However, digital assets and data are becoming increasingly important and should be protected accordingly. For this reason, cyber security should be examined in detail as a risk area.
In the report "Due diligence and the digital footprint", we explore an approach to extended due diligence that considers a broader range of risks and how a company's digital footprint should be factored into the valuation. The report is designed to help gain a more comprehensive picture of the value of a business and its future viability. For example, it looks at how to recognise the potential risks of digital companies. And we answer the question of how sales opportunities can be generated through new products and services.
Read our study to find out which risks are also coming to the fore and how companies can adapt their due diligence to technological progress.
