Global & Private Markets

SMERGERS transaction diligence

Published · Reviewed by The Diligence Standard Team · Updated

Global platform connecting businesses, investors, buyers, lenders and advisors across sale, investment and financing opportunities.

Diligence focus

  • Transaction type/perimeter
  • Legal entity and beneficial ownership
  • Jurisdiction/currency
  • Financial standard
  • Tax/regulatory status
  • Licenses
  • Cross-border contracts
  • Funds/closing mechanics

First evidence requests

  • Entity/ownership chart
  • Transaction perimeter
  • Audited/management financials and tax filings
  • Bank support
  • Material contracts
  • License/regulatory records
  • FX/currency detail
  • Cross-border tax/legal memo where material

Warning signals

  • Partial stake is presented like full-control economics
  • Currency/financial basis is unclear
  • Ownership records are incomplete
  • Regulatory licenses cannot follow buyer/control change
  • Cross-border tax and funds flow are deferred
  • Reported profit is not reconciled to source evidence