The Institute of Chartered Accountants in England and Wales (ICAEW) will release new guidelines for commercial due diligence (CDD) on 10 September 2005 in London. CDD’s importance in transactions has grown in the face of market fluctuations. The guidance, co-authored by KPMG Strategy Group and Luminii Consulting, will cover best practices, AI’s role, and more.

CDD’s application has increased post-global financial crisis as investors focus on future potential over historical performance, reflecting complex mergers. Luminii Consulting’s Lushani Kodituwakku emphasizes understanding market opportunity, risks, and growth levers. The upcoming guidelines will provide insights on CDD methodology, ethical considerations, and AI integration for practitioners.

KPMG UK Deal Strategy lead partner David Larsson notes CDD’s evolving role and value in deal processes, moving from a ‘tick-box’ exercise to a value creation plan. Larsson highlights the diverse sources and analyses involved in CDD, contributing to the time taken to establish the guidelines. The guidelines aim to provide clarity, rigour, and ethical standards to the field.

Luminii Consulting’s Kodituwakku stresses the importance of defining the scope of work in CDD commissioning. The guidelines will set a standard for CDD delivery, offering essential insights for commissioners and practitioners. ICAEW Corporate Finance head David Petrie emphasizes the critical role of a good CDD report in understanding and developing commercial opportunities in the age of AI.

Read more at Yahoo Finance: ICAEW set to introduce new guidelines for CDD