Given the ever increasing demand for credit, in particular, and for financial services, in general, in Sudan, Carawan Holding Company held discussions with the Saudi Sudanese Bank (SSB) and leading a financial due diligence effort to evaluate the viability of acquiring the Central Bank of Sudan and the other public sector stakes in the bank.  In preparation for this acquisition, Carawan set out to commission a Financial Due Diligence study of the bank. A bidding process was initiated with a detailed Terms of Reference which Unicons applied for and won.

The ensuing report constituted the preliminary findings of the Pre-Acquisition Due Diligence effort undertaken by UNICONS to evaluate SSB. More specifically, the objective was to investigate the bank’s investment potential by analyzing the various economic, financial, and technical aspects considered vital to the acquisition. More importantly, the report points to the information gaps and critical questions/issues which have to be tackled with the Saudi Sudanese Bank as a building block to reaching a final conclusive picture for the acquisition viability.

To conduct the evaluation in the most professional manner, UNICONS partnered with Mubarak El-Awad and Co. who are chartered accountants with good experience in conducting due diligence (DD). The methodology adopted by UNICONS to conduct this study was based on:

  • Collecting, analyzing, reviewing and verifying the accuracy of figures, information and data provided by the Bank. This was done through physical review of data, documents, board of directors and relevant committee meetings minutes, reports, management information system, the internal & the external audit reports and the Central Bank of Sudan Reports.

  • Interviews and meetings with key personnel at SSB, written confirmations and clarifications, data and information from the bank management.

  • In-depth review and assessment of the bank human resources, the information technology system, the internal control system, the credit risk process and procedure applied, Non-Performing Loans handling, status and provisioning level the compliance and audit systems in place, and other areas.

High level ratio analysis as well as comparative analyses was used in the analysis of the bank financials.