If you want to purchase a business or merger, you need a comprehensive inspection procedure of the investee – Due diligence.
Due diligence is a procedure to form an objective representation of the object of investment, including investment risks and many other factors. First of all, due-diligence is a comprehensive verification of legality and commercial attractiveness of the proposed transaction or investment project. Completeness and fullness of this check can allow investors or business-partners to produce deep check of the advantages and disadvantages of such cooperation.
Why do you need the procedure of Due-diligence?
The expertise of assets and obligations is held by the analysis of all aspects of the past, present and observed future of the company and identify any potential risks. Lack of due diligence may cause negative financial results after the change of ownership, the cause of lawsuits, tax and financial audits and other consequences.
The purpose of the procedure of Due-diligence is to avoid and as much as possible to reduce any existing business risks (economic, legal, tax, political, marketing):
· the risk of acquiring the company (shares) at an inflated price;
· the risk of default of debtor;
· the risk of loss of property, money;
· the risk of harm, including intangible assets (good will);
· the risk of seizure of property or use other security measures;
· the risk of invalidation of transaction;
· the risk of imposition of penalty on the property, securities;
· the risk of bringing to tax, civil or criminal liability;
· the risk of corporate conflicts;
· the risk of loss of intellectual property (trademarks, industrial designs, useful model, inventions, know-how, business idea, business plan);
· fraud risk competitors;
Full Due-diligence procedure consists of 3 stages:
1. Financial expertise of business;
2. Assessment of system of accounting, tax risks;
3. Legal assessment of risks, analysis of constituent documents.
Please contact us via e-mail:
info@belfort-consult.ru
Or by phone: +7 (495) 621 40 10