Due diligence

The acquiring party wants to know in advance that he is not making a bad purchase and orders an extensive audit. This investigation ensures that no legal, tax or other problems come to light. This audit also helps to determine the value of the company. 

Items covered in a due diligence review include: 

• Finances

This section is often examined by the buyer’s accountant. This review focuses primarily on the accuracy and presence of assets and the completeness of liabilities. The accountant also assesses the quality of the records. This review goes beyond a normal audit. 

• Fiscal affairs 

This part of the study examines whether there are any tax risks within the business being sold. This requires an understanding of tax returns and tax audit reports. 

• Legal affairs 

The buyer wants to understand the legal position of the company. Things examined in this part of the investigation include agreements, employment contracts, permits, claims, pending litigation and insurance. 

Want to learn more about how we can perform a due diligence for you? Then get in touch with us!