"Why is your company inspected?", an article for the "Neft Rossii" magazine (issue 5-6, May-June 2015)
"Why is your company inspected?", an article for ...
The KPMG Oil & Gas experts speak on rendering efficient due diligence, which is an essential stage of the pre-acquisition process, now particularly important given the growing trend to attract strategic investors in the Oil & Gas industry, including foreign investors.
In the meantime the culture of initiating, preparing and conducting due diligence exists for the most part in large companies and subsidiaries of international corporations: the process remains very time and labour consuming, this, according to the article, demonstrates that businesses are insufficiently prepared to attract investments.
"First, companies embarking on due diligence should consider their business readiness for this process," the article concludes. "Comprehensive planning can help conduct due diligence quickly and smoothly. The key factors here are deal closure experience, the professionalism of staff, efficient communication, availability of the coordination centre, and seller transparency – both on the part of top management and leading specialists. Due diligence is only a stage of a deal, and it is important that it goes without complications, as there is still a long way to go with further intense negotiations, signing of the contract and deal closure."