Financial Crime World

Financial Institution Due Diligence: Crucial for Businesses in Kenya

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In today’s fast-paced business environment, conducting thorough financial institution due diligence has become essential for businesses in Kenya. This process is particularly important when considering major transactions such as mergers and acquisitions, takeovers, investments, real estate purchases, or seeking financial assistance.

Why Due Diligence Matters

Due diligence involves a comprehensive review of a potential business venture to identify potential legal liabilities and fiscal feasibility. This process is geared towards the “know your customer/client” model before undertaking a transaction with them. In Kenya, financial institution due diligence is crucial in various transactions including:

  • Mergers and acquisitions
  • Takeovers
  • Investments
  • Real estate purchases
  • Seeking financial assistance

Types of Due Diligence Services

We offer three types of due diligence services to help clients make informed decisions:

Corporate/Commercial Due Diligence

  • Reviewing a company’s incorporation documentation
  • Verifying the list of directors and ownership structure
  • Reviewing company by-laws and financial records
  • Assisting clients in assessing the company’s financial health and identifying potential risks

Financial Due Diligence

  • Verifying financial information provided to assess the performance, credit health, and viability of a business venture
  • Investigating cash flow, liabilities, assets, debt, earnings management, insurance, and other financial aspects
  • Helping clients make informed decisions by providing a comprehensive review of the company’s financial situation
  • Assessing the legal basis of a transaction and the level of compliance with relevant laws
  • Reviewing contracts, litigation matters, and compliance levels with existing laws
  • Identifying potential risks and helping clients make informed decisions

Benefits of Conducting Due Diligence

Conducting due diligence is essential for several reasons:

  • Confirms the veracity of information brought up during an investment deal or process
  • Identifies potential defects in a transaction that may avert risks
  • Manages transaction risks
  • Reduces uncertainty
  • Allows clients to achieve best value for a transaction

Contact Us

If you are considering conducting due diligence in Kenya, please contact us at info@swkadvocates.com or +254726328555. Our team of experts is ready to help you make informed decisions.