Acquisition Due Diligence Service
Acquisition Due Diligence Services in the UAE
Confirm what you’re actually buying before the deal closes, not after.
Acquisition due diligence determines whether the financial information of a target company reflects reality, helping clients identify the factors most critical to a deal’s success and the business’s future.
- Multi-disciplinary review, covering financial, tax, operational, commercial and integrity checks
- Structured across three deal stages, from preliminary screening through to final closing
- Trusted by corporate groups, private equity firms and family offices across the UAE
A thorough acquisition due diligence process helps you understand a deal’s dynamics, value drivers, risks, synergies, and ultimately, the right price to pay.
What Is Acquisition Due Diligence?
Acquisition due diligence is the investigation a buyer carries out into a target company before committing to a transaction, confirming the facts behind the numbers rather than accepting them at face value.
At Farahat & Co., our Acquisition Due Diligence service focuses on the areas that have the most significant impact on value. Our specialists draw on deep local and national transaction experience to uncover hidden opportunities and risks, helping clients:
- Improve their understanding of the target business, increasing the likelihood the deal achieves its objectives
- Identify and understand critical success factors, supporting more informed business decisions
- Highlight strengths that can be built upon, and weaknesses that need resolution before closing
Successful bidders need focused due diligence to confirm price and funding, and to identify issues that need reflecting in the Sale and Purchase Agreement and any locked-box closing mechanism. Most engagements are completed within a matter of weeks, though the timeline depends on the scope, sector, and complexity of the target business.
Disciplines Covered in Our Acquisition Due Diligence
Every transaction is unique, and the depth of review needed on any given topic depends on the deal’s dynamics and the company involved. Our Acquisition Due Diligence specialists cover the following disciplines:
- Financial: revenue, profit and margin trends, quality of earnings, working capital and debt analysis.
- Tax: historical tax compliance, deferred tax liabilities, and the tax implications of the proposed deal structure.
- Integrity: background checks on the target company, its ownership, and key management.
- Operational and IT: internal processes, systems, and infrastructure that support the business day to day.
- Strategy and commercial: market position, customer concentration, competitive dynamics, and growth prospects.
- Environmental and sustainability: environmental liabilities and compliance obligations relevant to the target’s operations.
The Three Stages of Acquisition Due Diligence
Our Acquisition Due Diligence service is structured across three stages that map to the natural progression of an M&A transaction.
Preliminary due diligence
Review of the offering memorandum, an initial valuation, analysis of relevant data, identification of the core deal team, and collection of external data, culminating in a business case for management approval and a preliminary, non-binding expression of interest.
Detailed due diligence
Refinement of the initial valuation, site visits and analysis, deal structure development, identification of an integration manager, delivery of full due diligence reports, and submission of a final term or bid sheet.
Final due diligence
Collection of any outstanding data, negotiation of definitive agreements, review of the final contract and deal structure and warranties, and execution of closing agreements alongside integration planning.
At each stage, the objective is the same: confirm whether the deal should proceed, and on what terms, before committing further time and capital.
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Who Needs Acquisition Due Diligence Services?
Acquisition due diligence is relevant to a wide range of buyers, not only large corporate acquirers.
- Local and national corporate groups evaluating a strategic acquisition or investment.
- Sovereign wealth funds assessing minority or majority stakes in UAE and regional businesses.
- Private equity groups conducting pre-investment review ahead of a fund deployment.
- Family groups and holding companies considering business acquisitions as part of succession or diversification planning.
- Startups and growing businesses pursuing smaller acquisitions, joint ventures, or partnerships, where due diligence builds credibility with co-investors and lenders.
Whether you are considering an exclusive purchase or a competitive auction process, focused due diligence supports a faster, more confident buying decision.
Why Choose Farahat & Co. for Acquisition Due Diligence
Our Acquisition Due Diligence service is designed to help you retain control and stay aware of issues as they arise, backed by informed advisory expertise throughout the development of your deal strategy.
- Local and national transaction experience: our specialists have worked across a wide range of sectors and deal sizes within the UAE market.
- Full-discipline coverage: tax, financial, integrity, operational, strategic and environmental review, drawing on functional and industry experts as needed.
- Client range: from corporate groups and sovereign wealth funds to private equity firms, family groups, and growing businesses.
- Coordination with related services: our due diligence work connects directly with our Transaction Advisory, Valuation, and SPA Advisory teams for a consistent view of the deal.
- Established track record: over four decades supporting UAE businesses through complex financial transactions.