Due diligence is the exercise of caution generally expected of a prudent business (or individual) before entering into a major transaction. It includes collecting a variety of information so that you can form an objective view of the chosen investment object. Conducting due diligence contributes to making informed decisions due to the information received.
Tax Due Diligence
Tax Due Diligence (Due Diligence) is of key importance since the tax burden; risks can significantly impact the assessment of the condition and attractiveness of the transaction object.
Such a load can make any business unprofitable or unpromising in terms of investing. Or set certain restrictions and features that will make the industry impossible or ineffective. That is why it is important to understand and plan what taxes the company is currently paying, how much it will have to pay in the future, and whether it is possible to reduce the tax burden. All these questions will be answered by the specialists of our company on the basis of the tax Due Diligence service.
We will also check the cleanliness of the company, the presence and (or) absence of overdue and doubtful debts in the settlements of buyers (customers), suppliers (contractors), the budget, and other counterparties.
Financial Due Diligence
This is a verification of the reliability of information about the company’s financial condition, the results of its economic activities, and an assessment of its commercial prospects.
During the financial Due Diligence service (Due Diligence), we determine the key indicators of the company’s financial performance and assess future prospects, subject to certain standards and the existing market conditions.
During the financial Due Diligence, we analyze the income and expenses of the company, their structure, the presence of debts and assets, any liabilities, and loans. In addition, we check the quality of accounting and the relevance and reliability of the operations performed to reflect the facts of the company’s economic life. We consider and analyze the dynamics of growth (or decline) of the main indicators. We evaluate the quality of the work of accounting and financial services, accounting systems, and reporting. The quality and correctness of the formation of reporting indicators directly depend on quality control and reliable reflection of primary documents.
Legal Due Diligence
Our consultants will conduct a legal Due Diligence (Due Diligence) to avoid possible legal risks associated with the upcoming transaction. As a result of this study, existing encumbrances and possible financial and reputational risks of such an acquisition will be identified, which will make it possible to make a final decision both on the appropriateness of the acquisition and on how to structure the upcoming transaction and how to avoid the risks of acquiring an illiquid asset.
After evaluating the condition of the asset, and the status of the legal entity that owns it, you will be able to choose the most appropriate method of acquisition. If you prefer to purchase shares (stakes) in a legal entity – the owner and consultants specializing in mergers and acquisitions are ready to help prepare the transaction, comply with all corporate procedures, draw up an agreement, and provide legal support at each stage. If, for example, you purchase the production complex as real estate, you may need our real estate and construction specialists.