Whats Due Diligence ? - CiteHR
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Dear Friends
I would like to know more on Due Diligence it will be great if anyone can throw some light on this area.
I would like to know what is required from HR's end for Due Diligence and what sort of Reports or Documents that needs to be prepared from HR end to facilitate this process
Please advice
Harikrishna Gaura

Hi Gaura,
Due Dilligence exercise is generally carried out by Companies intending to acquire/ take over/invest money in the target company. It means taking reasonable care to verify critical aspects of buisness including HR, so that decision taken are based on varifiable facts.
From the HR perspective, it would mean, getting the records varified for the number of employees on the rolls of the company, their educational qualifications, dates of joining, current salaries, employment contracts, leave dues, Promotions and increments, critical employees for the organisation, Compliances with statutory, Labour and legal requirements, PF and gratuity provisions etc.
So HR department must have all relevant documents which could be verified by the team conducting Due Dilligence Exercise.
Hope that clears some of your doubts. In case you have any specific doubts, please let me know.
Naresh Taneja

Thanks allot for the response. I would like to know what sort of In depth & Detail reports we need to prepare from HR's angle to facilitate this process you have mentioned a few would like to know a bit more.
Incase if you have a checklist or some format It will be a great help for me
Thanks in advance
Harikrishna Gaura

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