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Due diligence services in Dubai answer one question before money changes hands: is this business what the seller says it is? A financial due diligence team reviews the accounts, cash, debts, tax filings and contracts of the target, then reports findings that can change the price, the terms or your decision to proceed.
Who needs it
- A buyer of a company or a share in one.
- An investor putting in funds.
- A lender making a large facility.
- A seller who wants to prepare answers before a buyer asks.
- A partner joining a business and taking on its history.
What the review looks at
| Area | Typical question |
|---|---|
| Quality of earnings | Is the profit repeatable once one-off items and owner costs are removed |
| Cash and working capital | Does profit turn into cash, and what level of working capital does the business need |
| Debt and commitments | Loans, guarantees, leases, unpaid supplier balances |
| Tax | Were corporate tax and VAT registrations and returns filed where required |
| Records | Can the ledger be traced to bank statements and contracts |
| Related parties | Balances and trades with owners and their other companies |
Ask the provider to confirm the checks against the corporate tax registration and VAT registration status of the target. Where the facts matter, check the current rule on the Federal Tax Authority page.
What the deliverable looks like
A written report with an executive summary, the scope and limits, findings by area with figures, adjustments to reported profit and net debt, and a list of issues to handle in the sale agreement. Many teams also present it in a meeting so you can ask questions. The report is for the party that paid. Other people may not be allowed to rely on it.
How it differs from an audit and from valuation
An external audit is a formal opinion on past statements. Due diligence is private and targeted. A valuation puts a number on the business. Diligence tests the inputs that go into that number.
How to choose a provider
- Licence. Check the firm's Dubai or free zone trade licence for the services it offers.
- Who signs and who works. Ask for the named partner and the people who will review the files.
- Independence. If the firm audits or advises the seller, you have a conflict. Ask directly.
- Scope. Financial only, or also tax, legal and commercial. Each is a separate piece of work and often a separate firm.
- Experience with your deal type. A small trading company and a multi-entity group need different skills.
What to ask in a quote
Scope, period reviewed, named team, data request list, timetable, who owns the report, who can rely on it, and how extra requests are charged. Prices are rarely published, so compare scope before price. Request several quotes through get quotes.
Timing in general terms
Work starts with a data request list. Delays usually come from missing documents rather than from the analysis itself. Agree a cut-off date for the numbers and a date for the draft report before you sign the engagement letter.
Preparing as a seller
If you are selling, get ahead of the review. Tidy your ledger, reconcile every bank account, list all loans and guarantees, and check that your tax registrations and filings are up to date. Separate personal spending from company spending. Buyers who find clean records tend to move faster and argue less about price.
Be open about known problems. A weakness you disclose early becomes a negotiation point. One the buyer discovers late can damage trust and delay the whole deal.
After the report
Use the findings in the deal itself. Issues can lead to a lower price, a retention of part of the payment, a warranty in the sale agreement, or a condition that the seller fixes something before completion. Discuss the report with your lawyer before the final terms are agreed.
