Financial Due Diligence

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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.