Steps for proper due diligence to be done when investing in a company
Hi bosses,
Wanted to understand what should be the proper steps taken for DD when wanting to investing in a company as a minority shareholder?
- Latest ACRA profile to check latest ownership structure
- Audited financial statements and latest unaudited if have. Addn check with audit company to ensure FS are true
- Investment contract. (what should the main terms cover?)
- How should payment be done if it's a lump sum investment? Paid only to the actual company name.
- How about the change of shareholdings in a company? When should it be reflected? How can i shorten the window between paying the lump sum and getting the shareholdings updated to reflect myself/my company as new minority shareholder?
I understand investments will always have risk but want to understand best DD one can take when investing in a company.
Thx!