Financial and Accounting Due Diligence
How stable and sustainable are the results of your investment? What risks cannot be found directly on the Statement of Financial Position? We describe our findings in the financial due diligence process and put the focus on subjects that are relevant for the valuation of the company and negotiations with the buyer/seller. Since a lot of value can be gained or lost at an early stage in the negotiation process, we offer information updates on risks prior to acquisition in real time – whenever they are needed. You will receive from us clear statements on the risks that should be addressed in the purchase agreement.
Company acquisitions not only entail opportunities, they can also imply risks for the potential buyer and the seller. Any and all information and being able to judge this competently can ultimately have an impact on the purchase price.
Financial and accounting due diligences help even out the information asymmetry between the buyer and the seller, enabling both parties to have the same information at their fingertips on the target company, and so the price negotiations can genuinely take place between equal parties.
Apart from giving a better understanding of operations at the target company, financial and accounting due diligences help to make more prudent decisions and speed up the decision-making process by identifying, mapping and presenting hidden risks and potentials.
Alongside financial and accounting due diligences we also gladly support our clients in managing the entire transaction.
We offer legal and tax due diligences too in our service portfolio, as well as financial and accounting due diligences.
Buy-side due diligence
- During a buy-side due diligence the emphasis is placed on analysing the target company’s balance sheet, income statement and cash-flow statement, where the main value drivers and cost factors of the target company are identified.
- Historical data is presented after adjustments for one-off effects and for any measurement methods that potentially distort the true and fair view.
- Future plans are examined for authenticity, rationality and internal consistency, while plans are subject to critical analysis.
Sell-side due diligence
- As part of conducting a full sell-side due diligence we deliver a data room solution, we manage the data room, we represent the seller at management interviews, and we play an active part in drafting the contract with the help of tax and legal experts.
- During a sell-side due diligence the company is presented objectively and realistically, highlighting its positive features and focusing on the potential inherent in the company.
- We ensure that the materials put together comply with the requirements of the potential investor or investors in terms of content and format, while the professional company presentation strengthens the seller’s bargaining position.
- By using our services, the employees of the target company do not have a significantly higher number of tasks to deal with because of the due diligence, so the company’s day-to-day operations can continue over this period without any considerable extra effort.
Other due diligences besides financial and accounting due diligences
- As part of our due diligence services we can also assess existing financial processes at companies, analyse efficiency, optimise current procedures and develop new ones.
- With our services you can ensure you comply with the financial components of a buyer audit.
- Well-identified risks and shortcomings help to elaborate appropriate strategies, which constitute further added value for the company and can make a substantial contribution to the success of the business.