Due Diligence Advisory That Exposes Risk, Protects Value
Understanding a business from the outside is difficult. Numbers on a spreadsheet don’t tell the whole story. Real risks lie beneath what appears clean. That’s why due diligence isn’t just a checkbox before a transaction, it’s a guardrail.
If you’re acquiring a company, investing capital, or entering a partnership, the right review can stop a loss before it starts. At Hectogon, we focus on due diligence as a protection tool. We look at financials, operations, legal standing, and people. Then we uncover gaps, risk, liability, and exposure.
We prepare a financial due diligence report that addresses not just the past but the future impact of every inconsistency. The numbers matter, but the interpretation matters more. We help buyers, investors, lenders, and promoters read between the lines. Each figure is reviewed, verified, and stress-tested for accuracy. If the numbers don’t hold up, we say so, on record.
Going Beyond Spreadsheets: Financial Due Diligence That Works
Too many businesses rely only on audited statements. They forget that those figures represent the past. Transactions require forward-looking judgment. This is where financial due diligence steps in. We evaluate quality of earnings, one-time income, customer concentration, receivable risk, EBITDA adjustments, and debt coverage.
Suppose you’re acquiring a warehousing company showing 18% EBITDA. After review, we find that 40% came from a one-time lease settlement. The rest of the margin is under pressure. If this fact was missed, you would overpay. We capture these issues clearly in the financial due diligence report with supporting documents and flags. Every report we deliver is bank-ready, investor-compliant, and litigation-tested. No shortcuts. No assumptions. No bias.
Legal Due Diligence is Not Just Paperwork?
A missed clause can undo a deal. We see that often when legal contracts are reviewed without context. When we undertake legal due diligence, we don’t just read. We assess. Every agreement, lease, litigation, and title is examined against transaction objectives. Our team includes commercial lawyers, regulatory experts, and property law specialists. This way, your transaction risk reduces before it begins.
Let’s say a manufacturing unit owns land but hasn’t updated mutation entries for 15 years. The asset is legal, but a buyer cannot raise funds on it unless documentation is updated. We fix that. Or consider a loan agreement with a restrictive covenant. If not renegotiated during acquisition, the new owners lose control on cash flows. We identify these due diligence legal issues and propose corrective actions.
What We Review in Legal Due Diligence
- Title verification, chain of ownership, and encumbrance review
- Litigation history and pending liabilities across civil, tax, and labor courts
- Lease deeds, vendor contracts, distributor agreements, and customer obligations
- Statutory licenses, pollution control, factory licenses, and land-use approval
- Debt agreements and financial covenants under scrutiny
- Employee obligations including pending PF, ESI, or gratuity arrears
- Termination clauses and liability triggers in supplier contracts
- Disputes involving trademarks, IP rights, or brand licensing
- Insurance coverage and exclusion clauses
Due Diligence for Commercial Sense
Beyond numbers and legal titles, businesses fail when models don’t work. That’s why we also offer commercial due diligence services. We assess vendor reliability, customer concentration, pricing power, margin sustainability, regulatory exposure, and competitive position.
This becomes critical when the industry is changing, or the company is pivoting. We interview customers, validate order books, assess pipeline quality, and model future revenue trends.
Imagine evaluating a logistics startup that claims aggressive growth. They show a strong pipeline. But during our review, we discover the top three clients contribute 70% of revenue and are on one-year contracts. That’s a risk, not a scale. We document that in the financial due diligence report and explain how it affects deal valuation. Commercial sense requires outside perspective, which internal teams cannot provide objectively.
Legal Due Diligence of Property Is Often Ignored
We handle many deals where property rights are assumed. When titles are not clean, and property isn’t free from encumbrance, the transaction becomes risky. Our legal due diligence of property covers mutation, registration, title search, charge registration, compliance, and change-of-land-use certification. This is essential for real estate funds, land aggregators, and industrial units.
We don’t stop at ownership checks. We review zoning, conversion approvals, litigations, and tenant claims. In one case, we found that a commercial plot was part of an acquisition ceiling under state law, and the buyer would have violated acquisition limits. Our findings changed the deal. These risks are real and common.
Conducting Corporate Legal Due Diligence: What to Expect
We go step-by-step.
- First, we understand the deal, buyout, merger, investment, or debt transaction.
- Then, we request data. After that, we map risk areas, conduct interviews, and prepare summary matrices.
- Our approach to conducting corporate legal due diligence is partner-led. We ensure that deal logic matches documentation.
Every issue is mapped to its financial impact. The result is a legally sound, commercially viable, and bankable business case.
We always include a financial due diligence report in our corporate mandates. It’s cross-referenced to the legal sections. This way, accounting issues, litigation, or regulatory gaps never go unnoticed.
Why Clients Trust Our Due Diligence Process
Because we tell the truth even if the deal breaks. That’s why promoters, lenders, PE firms, and law firms hire us again. Our financial reports uncover what audits miss. Our legal reviews test assumptions. Our commercial validation is based on field data, not theory. And our team works together, not in silos.
We deliver a financial due diligence report that can be presented to any investor, lender, or regulatory body. It is detailed, yet simple. Technical, but actionable. Every item flagged is supported by documents, precedents, or court rulings. Our reports are not just summaries. They are instruments of risk prevention.
