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CAPITAL INVESTMENT APPRAISAL
Due diligence investigations
• A due diligence investigation refers to a detailed examination of
the investment prior to the acquisition. The aim of such
investigations is to ensure that the acquiring company makes an
informed decision. The results of such procedures could lead to a
change in the terms of the acquisition, or even a cancellation of
the transaction.
Systems, information, confidentiality and disclosure
requirements
• When performing a capital investment appraisal it is important to
ensure that the information utilised to make the decision is
reliable and is kept confidential. Furthermore consideration
should also be given as to whether the entities current systems
will be able to support the investment or will an upgrade be
required.
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