The term “Due Diligence” describes the careful, systematic, and detailed investigation, examination and analysis of information related to an investment, takeover or merger participant or the disclosure of information by the target itself.
The term “Due Diligence” goes far beyond the boundaries of conventional auditing, for example, of annual financial statements or trading books
In the case of a financial Due Diligence, the assistance we provide would specifically include the following activities:
- Analysis of the financial situation;
- Evaluation of important accounting documents from the point of view of valuation changes and accounting changes;
- Studying the contracts concluded with customers, suppliers and employees, with the follow-up of their consequences on the assets, finances and income of the target company;
- Deduction of the results corresponding to the purchase price, for example, EBITDA or EBIT;
- Analysis of sales revenue and margins according to the sectors in which the company operates;
- Reviewing existing financial forecasts and creating alternatives;
- Checking the mathematical accuracy of integrated planning.
