Financial Crime World

TIMOR: The Importance of Due Diligence in Finance

When it comes to finance in Timor, due diligence plays a crucial role in ensuring that deals are successful and profitable. But what exactly is due diligence? From a dealmaking perspective, due diligence involves evaluating a deal from multiple dimensions to assess its assets, identify risks, and determine its long-term commercial potential.

A Holistic Approach to Due Diligence

At KPMG, our team of professionals takes a holistic approach to due diligence, considering traditional risk-focused areas such as:

  • Financial
  • Operational
  • Tax
  • Legal

As well as more dynamic factors like:

  • Digital applications and technologies
  • Environmental, Social, and Governance (ESG)
  • Cyber security
  • People and Change
  • And more

Our Comprehensive Approach to Due Diligence

Our comprehensive approach includes:

Financial Due Diligence

  • Delving into the target company’s financial records to ensure accuracy and integrity
  • Focusing on potential litigation, regulatory compliance, intellectual property issues, and contractual obligations

Operational Due Diligence

  • Assessing the quality of assets, infrastructure, operations, and technology in use

Strategic Due Diligence

  • Evaluating market trends, competitive positioning, and growth opportunities

Digital Due Diligence

  • Analyzing large-scale digitally retrievable information using data analytics and machine learning algorithms

HR Due Diligence

  • Considering human capital, remuneration policies, and retention arrangements
    • Helping dealmakers identify payroll compliance issues and potential risks around reputation, regulatory challenges, and financial impacts

Cyber Due Diligence

  • Contemplating a target company’s cyber security strategy and how they maintain privacy of company and customer data

ESG Due Diligence

  • Assessing environmental, social, and governance risks, liabilities, and opportunities for a target

Synergy and Separation Due Diligence

  • Considering the costs and benefits of mergers and demergers that need to be factored into the deal makers’ valuation thesis

Benefits of KPMG’s Due Diligence Services

For dealmakers in Timor, our due diligence services provide a strategic tool to identify potential opportunities to create value at an early stage in the deal cycle. By shaping the negotiation process, influencing the final deal structure, pre-empting potential impediments, and focusing management on areas of business that can generate long-term value, we help clients make confident decisions with conviction.

Contact Us

If you have questions about due diligence for your business, contact your local KPMG leader today to learn more.