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A Due Diligence Report is a comprehensive evaluation document that examines a business's key aspects before major transactions like mergers, acquisitions, or investments in Malaysia. It dives into financial records, legal compliance, operational health, and potential risks by reviewing documents, licenses, and regulatory requirements under Malaysian law.

These reports help investors and companies make informed decisions by uncovering issues like pending litigation, tax obligations, or compliance gaps with Bursa Malaysia regulations. Malaysian business practices require special attention to Shariah compliance, local ownership rules, and sector-specific regulations, making thorough due diligence essential for protecting stakeholder interests and ensuring successful deals.

You need a Due Diligence Report when planning significant business transactions in Malaysia, especially before mergers, acquisitions, or major investments. It's essential during pre-IPO preparations, when seeking strategic partnerships, or before purchasing commercial property. Malaysian regulations make this particularly important for transactions involving Bumiputera ownership requirements or foreign investment restrictions.

The report becomes crucial when dealing with regulated industries like banking, healthcare, or telecommunications, where compliance with specific Malaysian laws is mandatory. It's also vital when acquiring companies with valuable intellectual property, multiple subsidiaries, or complex licensing arrangements. Getting this report early helps identify deal-breakers and negotiation leverage points before committing significant resources.

• Due Diligence Audit Report: Focuses on detailed financial and operational reviews, especially useful for M&A transactions in Malaysia. Most Due Diligence Reports also come in industry-specific formats like Property Due Diligence (examining land titles and development approvals), Legal Due Diligence (reviewing contracts and compliance), and Financial Due Diligence (analyzing accounts and financial obligations). For technology companies, IT Due Diligence Reports specifically examine digital assets and cybersecurity measures under Malaysian data protection laws.

• Investment Banks and Financial Advisors: Lead the due diligence process, coordinating investigations and preparing comprehensive Due Diligence Reports for clients
• Corporate Lawyers: Review legal aspects, verify compliance with Malaysian regulations, and assess potential legal risks
• Accounting Firms: Examine financial records, tax compliance, and financial projections
• Company Directors and Management: Provide necessary information and documentation, review findings, and make strategic decisions based on the report
• Regulatory Bodies: Including Bursa Malaysia and Securities Commission, may require Due Diligence Reports for certain transactions or listings

• Initial Research: Gather company registration documents, financial statements, and licenses from the Companies Commission of Malaysia (SSM)
• Legal Documentation: Collect corporate governance documents, contracts, and regulatory compliance records
• Financial Analysis: Compile tax returns, bank statements, and audited accounts for the past 3-5 years
• Operational Review: Document business processes, employee records, and asset registers
• Report Structure: Our platform generates comprehensive Due Diligence Report templates that ensure all critical elements are covered under Malaysian law
• Final Verification: Cross-reference findings with Bursa Malaysia requirements and industry-specific regulations

• Executive Summary: Clear overview of findings, scope, and methodology used in the investigation
• Corporate Information: Company structure, shareholding details, and compliance with Malaysian Companies Act 2016
• Legal Status: Verification of licenses, permits, and regulatory compliance including Bumiputera ownership requirements
• Financial Analysis: Detailed review of accounts, tax compliance, and financial obligations
• Risk Assessment: Identification of potential legal, operational, and compliance risks
• Verification Statement: Confirmation of information sources and investigation scope
• Appendices: Supporting documents and detailed findings organized by category

A Due Diligence Report differs significantly from a Due Diligence Checklist in both scope and function within Malaysian business practices. While both documents support thorough business investigations, they serve distinct purposes and are used at different stages of the due diligence process.

• Depth and Analysis: Due Diligence Reports provide comprehensive analysis and conclusions, while checklists simply outline items to be investigated
• Legal Weight: Reports serve as formal documentation of findings and can be used in legal proceedings or negotiations, whereas checklists are primarily internal working tools
• Timing of Use: Checklists guide the investigation process from the start, while reports present final findings and recommendations
• Professional Input: Reports require expert analysis and interpretation of findings, but checklists can be completed by various team members following a standard format
• Regulatory Compliance: Under Malaysian law, certain transactions require formal Due Diligence Reports, while checklists have no statutory standing