Japanese Firms Must Prioritize Due Diligence for Financial Services Success
In today’s fast-paced and highly competitive financial landscape, conducting thorough due diligence (DD) is a crucial step in determining whether to pursue an acquisition or merger. This critical process offers a valuable opportunity for direct contact with management and business personnel of the target company before making a final decision.
What is Due Diligence?
At its core, DD encompasses four key areas:
- Financial Due Diligence: Analyzing financial risks and understanding historical normalized profitability
- Tax Due Diligence: Validating potential tax liabilities
- Legal Due Diligence: Ensuring the validation of potential risks related to legal rights and obligations and pending cases
- Business Due Diligence: Assessing market growth and analyzing business probability
A Holistic Approach to Due Diligence
Depending on the unique characteristics of a project, DD may also involve professionals from various areas, including:
- Personnel Management Systems and Organizational Deployment Systems: Identifying potential issues with human resources and organizational structures
- IT Due Diligence (ITDD): Measuring issues in information systems and the value of IT assets
- Operational Due Diligence: Identifying operational inefficiencies and improvement points
PwC’s Comprehensive Due Diligence Services
To support Japanese firms in their M&A endeavors, PwC offers a comprehensive one-stop service that seamlessly integrates bespoke due diligence services designed to maximize business value after an acquisition or merger. By leveraging the expertise of industry professionals, companies can gain a deeper understanding of potential risks and opportunities, ultimately driving informed decision-making and long-term success.
By prioritizing due diligence, Japanese firms can make informed decisions about their M&A endeavors and set themselves up for long-term financial services success.