If you’ve read Part 1 of our due diligence series, you may have realised that a due diligence process will require a significant amount of documents to be submitted. If you haven’t, read it click here.
Examples of typical documents
So, what are the typical documents that you may be asked to provide, sign or submit as part of a business due diligence process? Below, we mention some of the most common document requests.
1. Know Your Client (KYC): Background and criminal submissions, examples include:
- ID copies of entrepreneurs/shareholders and directors
- Signed credit check forms for the individuals
- Signed criminal check forms for the individuals
- Proof of residence of entrepreneurs/shareholders (as well as the business)
2. Compliance and governance documents submissions, examples include:
- Memorandum of Incorporation (MOI) or an equivalent document
- Share register and share certificate (if your business is a registered company)
- Updated (verified) list of directors
- Valid BEE certification
- Significant business policies and related documents (including operational and governance agreements)
- Any (valid) licenses and certifications related to the business that are critical to the industry and/or service offering by the business
3. Financial and taxation documents submissions, examples include:
- Historical signed and prepared Annual Financial Statements (AFS)
- Annual return submissions
- Tax compliance or verification pins
- A detailed business plan
- A detailed financial budget/forecast for a stipulated period including detailed use of assumptions for that period
As we mentioned, these are just some of the typical document requirements required in a transactional due diligence process. The requirements may be more extensive and detailed should the transactions be more complex or specialised.
At Evimeria Consulting, we are able to guide your business through the due diligence process for various business and corporate finance transactions and offer you comprehensive business advisory services. In addition, we are able to provide detailed financial budget/forecasts as well as assist in your business plan submission. Contact us today.
Author – Hitesh Dullabh
Director – Evimeria Consulting
