Each entrepreneur should always exercise due diligence before making decisions, especially if it involves contracting or acquiring an existing business.
To assess the counterparty or the acquired business, the due diligence procedure is used – “ensuring due diligence”, means a system of complex measures aimed at:
- comprehensive verification of the legality and commercial attractiveness of the planned transaction for the purchase of the merger (accession) object;
- legal support of the transaction for the purchase of the merger (accession) object.
Main purpose of Due diligence – formation of an independent objective representation:
- on the real financial condition of the object of purchase;
- on all risks that can significantly worsen the financial condition of the object of purchase;
- on the market value of the shares of the object of purchase (for joint stock companies).
Reliable specialists (auditors, lawyers, financial analysts and experts in assessing the activities of enterprises) can conduct Due Diligence to:
- determine the real value of the object of purchase;
- identify tax risks and benefits;
- conduct legal and financial expertise of the company, to identify risks as much as possible, related to her purchase.
In the process of due Diligence, standards, methods and recommendations for international Due Diligence are applied.
The result of Due diligence is a Report on the evaluation of the business (or a package of shares) of the enterprise.
The approximate content of the report is here.
The price of due diligence is determined individually on the basis of the applied hourly rates of specialists and the working time required for the quality of services.
The preliminary cost of due dilligence can be estimated on the basis of General information about the specifics of the task on the basis of which we will send you after the application.
The first consultation and drawing up of the approximate work plan we provide free of charge.