Due Diligence Process

Due Diligence Process
Evaluation Methods

Offering a due diligence process that is flexible and responsive.

MOMENTUM OIL offer an agile due diligence process that is flexible and scalable to the specific demands of each transactions. In analyzing any investments, we review several main areas of qualifications to identify attractive investments: product, business model, management competition, industry, growth prospects, financial structure, management capabilities, employee relations, legal issues, operating structure, exit strategy, etc.

All Trading participants behind every project should meet the following criteria:

  • Their work must meet MOMENTUM OIL high standards for transparency, verifiability and repeatability.

  • Have a track record for delivering on promises.

  • They are not listed in any MAIN black list database.

  • Their projects are eligible for transactions between related parties or trade transactions.

Once trading participants and their organizations meet these criteria, they are officially members of MOMENTUM OIL ‘Inner Circle Community’  and are eligible for buying and/or selling through MOMENTUM OIL.

Due Diligence process

In order to ensure that the trading participants behind projects in MOMENTUM OIL network meet the criteria above, we evaluate them through three lenses:

  • Qualification for MOMENTUM OIL marketplace entry.

  • ICC Customs Guidelines.

  • Compliance with international fraud black list.

In addition to the initial due diligence described above, MOMENTUM OIL conducts additional evaluations through four mechanisms:

  • Detail Questionnaires: We begin our due diligence process by sending detailed questionnaires to our target which covers the areas of business, financial and legal diligence. We subsequently follow up with a variety of methods and activities.

  • Business Diligence: Our business diligence process is aimed towards deeply understanding the character of the promoters and the fundamentals of the business. Whether its detailed meetings with the management team, site visits, or thorough financial modelling each activity has the goal of making sure that we fully comprehend out target’s business and its promoter’s thought process. Concurrently we undertake a series of background testing including reference checks, secondary research, and customer and competitor meetings in order to fortify our understanding and our trust in management.

  • A “no-surprises” Approach to Financial Diligence: Our approach to financial due diligence addresses the unique dynamics and risks of each transaction. We commit to a “no-surprises” process in which you will receive frequent and appropriate communication. Issues are identified and communicated as they are discovered and always prior to the issuance of our written report. In our financial diligence process we take an in-depth look into our targets financials with the aid of one of the “Big 4 firms” who conduct a detailed and thorough analysis. During this process we study historical performances, accounting procedures, and other financial figures & process in order to certify that our target has a solid history of financial honesty and completeness.

  • Legal Diligence: We conduct our legal diligence along with a leading legal law firm and comb through documentation such as registrations, licenses/leases, ownership documents, and board meeting minutes to confirm that these process are in order. We also discuss any outstanding legal issues and review any disputes our target may be involved in so that we can understand the impact on the business.

MOMENTUM OIL will work closely with you to make sure that the proper due diligence strategy has been implemented.

For further information regarding contracts, procedures or client requirements, please ​​​​contact​ us.