Due diligence when buying an RTO is designed to help you in your decision-making procedure when buying an RTO or CRICOS firm by giving you the required information needed to determine if a particular provider is a sound fit for your company. In this first package, a private investor will perform an independent audit of the chosen vendor to identify the key risk factors associated with the vendor and deliver you an independent audit report as well as risk analysis. This second package, which is focused on the CITI account will use CITI’s marketplace information to identify the vendors that have the best due diligence services. Using these two important tools, you are able to obtain the necessary information needed to make an informed decision and make a profitable investment.
The third and final package will deal with the due diligence when purchasing from a CITI provider. This package will require a purchaser to perform an independent audit of the contract service support provider’s customer record to determine if the business is providing accurate information to support their claims and support their contracts. A purchaser will need to perform this service at least once in order to determine if a CITI provider is providing a credible and stable back-up system. If a buyer decides to bypass this step and choose a CITI vendor without performing this necessary step, they run the risk of purchasing a poorly performing CITI firm who may go out of business a few months down the road or may have difficulty in tracking their own business assets.
When buying an RTO, or purchasing CRICOs for that matter, one must understand the entire process and be comfortable implementing the steps. Buying an RTO can be extremely stressful for a new company because of the many unknowns involved. It can also be very time consuming. A number of RTO vendors exist and it is important to do research on each of them. When buying an RTO, the key issues to look for are whether the provider has experience managing a similar-sized business, the internal audit process, whether the provider is self-supporting (they provide training and tools) and whether they have an RTO in place or not.
If you are considering buying an RTO and are looking to do due diligence contact Vivacity – consultants in RTO compliance