The careful, systematic and detailed investigation, examination and analysis of the data of an investment, take-over or merger candidate or the disclosure of information by the target object itself, describes „Due Diligence”.
In Financial Due Diligence our support would typically include the following activities:
- Analysis of the financial situation
- Valuation of important accounting documents in terms of assessment changes and accounting changes
- Examination of contracts concluded with customers, suppliers and employees in regard to their effect on the assets and revenue of the target company
- Calculation of purchase price and relevant results e.g. EBITDA or EBIT
- Analysis of the sales revenues and margins according to company sectors
- Examination of existing financial forecasts and establishment of alternatives
Further services related to Due Diligence
- Determination of possible deal breakers
- Analysis of the company to identify important value drivers and the decisive success and risk factors
- Advice on acquisition structuring (transaction)
- Valuation of the target
- Support in the establishment and negotiation of the purchase price
In addition to Financial Due Diligence, Tax Due Diligence is of great significance in relation to the acquisition of a company. Experts from our Tax department are highly qualified and have vast experience in that field.