Due diligence is a service for the investor during the merger and acquisition transactions which aims to investigate the target company from a financial, tax and potentially other perspective. The aim of our due diligence services is to investigate and assess the target company, identify key transaction and financial issues and suggest next steps in relation to the purchase price (valuation model), SPA or post-transaction actions.
In our due diligence report, our clients also find recommendations and other suggestions for the steps to be taken to successfully complete the transaction. However, the structure of the report and our procedures always depend on the specific needs of the client, the nature of the transaction and the industry in which the target company is engaged.
Our due diligence is usually focused on the following areas:
- Identify transaction and financial risks and / or opportunities for the Buyer
- Normalized profitability (e.g. "adjusted EBITDA")
- Revenues, margins, profitability and key business drivers
- Net debt including off-balance sheet items and other adjustments
- Working capital analysis incl. its average level for completion accounts purposes
- Analysis of other balance sheet items and cash flow
- Capital expenditures
- Related parties
- Business plan analysis
- Tax due diligence and tax transaction structuring
We continuously communicate our findings to the client and provide a professional team with proven experience throughout the due diligence process. Thanks to the investigation, our clients not only get a real picture of the target company, but often they also save significant sums in the purchase price negotiations or they can even avoid an unsuccessful transaction in some cases.
Our typical clients include both the strategic investors and the private equity funds operating not only in CEE region.