The term “Due Diligence” refers to the extensive information gathering procedure carried out prior to the acquisition of a company. The aim of the investigation is to identify and assess at an early stage the risks existing in the company that is planned to be acquired. As part of the Due Diligence process, a SWAT (strengths, weaknesses, opportunities, and threats) analysis of the target company is performed. In this context, the financial, tax and legal aspects of the target of the acquisition have a particular importance.
The more you, as a purchaser, know about the target company, the more you can make an informed investment decision. Guarantees to be granted by the seller can only be adequately incorporated into the contract if you know about the advantages and disadvantages of the company to be acquired.
In addition to Financial Due Diligence, all significant legal and tax risks are generally also examined as part of a company analysis.
Financial Due Diligence focuses on the valuation of the company. The most important tasks here are the careful examination of equity, assets, receivables and liabilities, sales and expenses as well as the liquidity of the target company. To gain an objective and undistorted picture of the economic assets of the potential takeover company, the financial results must be critically scrutinized.
The aim of the Financial Due Diligence is to record the economic basis of the entrepreneurial activity and to comprehensively identify all significant financial risks as well as the strengths and weaknesses of the company and, if possible, to name them.
Another important component of due diligence analysis is Tax Due Diligence. in which both the existing tax liabilities and the tax risks that could arise from the acquisition are examined and presented.
As part of the Tax Due Diligence, the current tax status of the company is examined. In addition to this, the main objective is to identify potential latent risks, but also possible tax opportunities. The knowledge gained also allows the transaction to be structured in a tax-optimal manner.
Our services include Tax and Financial Due Diligence. For Legal Due Diligence, we work together with legal experts or are happy to recommend an experienced law firm.
After successfully completing the acquisition of a company, we can also offer you the following services:
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