“Once this is done, any firm who wishes to purchase a company/companies can sign a Non Disclosure Agreement (NDA) with CB to obtain a due diligence document of a company which interests them,” one official told the Business Times. He said this exercise is expected to be concluded within this month.
He said that CB is paying for this exercise. The required Financial, Tax and HR Due Diligence will need to be carried out by reputable firms, preferably with international expertise in such processes, while the purchase consideration must be based on sound internationally accepted, market-based principles, he added. “Firms of Accountants with international connections and the Institute of Personnel Management have been invited to provide advice and guidance to banks and Non Bank Financial Institute (NBFI), to assist them in this process,” he said. He added that the payment of consultancy fees for necessary advice/guidance that will be provided by the consultants on accounting, tax, valuation of businesses, HR issues etc. in the merger and absorption processes will be met by the CB.