DUE DILIGENCE IN GENERAL
Due diligence is a procedure focusing on obtaining objective and reliable information prior to particular investment or some other type of transaction i.e. reaching an important business decision. Therefore, due diligence is done before reaching important decisions such as acquisition, takeover or merger.
Reasons for potential investors to consider a particular investment can be various: to expend their market share, to acquire particular intellectual property, to increase a disposable sales network etc. A due diligence procedure involves testing of well-foundedness of the reasons based on which a potential investor plans to enter an investment.
Performance of a due diligence procedure can be expensive and time-demanding, but when compared to the price of a total investment, due diligence expenses are smaller than potential risks and losses. The scope of an due diligence procedure can significantly vary, from verification of particular references to a detailed analysis of an overall potential investment – depending on needs and demands expressed by a potential investor.
Our experience in this field is a foundation for fast and quality recognition and determination of financial risks and profitability of a total investment. Depending on specific demands and needs, we can perform due diligence procedures of various scope and focus. If necessary, we cooperate with experts in other fields (such as legal experts, real-estate evaluation experts and similar) or we include them in the procedure.
WE PROVIDE:
1. Financial due diligence
Existence of a large number of financial information does not necessarily represent a good basis for reaching a decision on a potential investment. There is more to financial information than numbers. It is also relevant to know how to recognize important information and make a correct conclusion. Our tax advisers and auditors, based on their experience and knowledge, make adequate quality conclusions from presented financial data. Financial due diligence focuses on the financial position and potential related to the realization of a future profit.
2. Tax due diligence
Tax due diligence can be performed as a separate procedure with an extra focus on tax risks or as a part of an overall due diligence procedure. The importance of performing a tax due diligence procedure lies in the fact that financial indicators do not indicate tax risks, even in those cases when these risks are significant. Since the tax issue is a very delicate one, our advice to potential investors is not to neglect this area, when reaching an investment decision.