Financial Due Diligence
We have a broad experience in both buy-side and vendor due diligence.
Buy side due diligence
A buy-side due diligence is performed on behalf of the potential buyer and targets the assessment and of the risks inherent to the target company. Its goals is to inform the buyer of strengths, weaknesses, opportunities and treats of the potential target. Based on this information the potential buyer can make a well-founded investment decissoin.
Items covered during the due diligence include in general the following items:
- Audit and/or in depth analysis of the financial statements, including a business analysis, a quality of earnings analysis, an EBITDA analysis, a balance sheet analysis and a working capital analysis
- Review of the business plan
- Tax due diligence
- Legal due diligence
- Investigation of pending claims
- Analysis on the ownership and existence of specific assets
- GAP analysis between local GAAP and the GAAP of the buyer
Vendor due diligence
A vendor due diligence comprises in general the same topics as a buy-side due diligence but is performed on the initiative of the seller. It provides a reporting the can be used to persuade potential buyers. It creates a comprehensive report that can be used by the seller to reach on a consistent and safe manner towards a larger number of potential buyers.
Tax due diligence
Whether you are a buyer or seller, you should know what the tax implications are during a corporate acquisition. We can help you make a correct assessment by carrying out tax due diligence.
As a buyer or seller, we examine the following points for you:
- Verification of the historical tax risks (income tax, VAT, etc.) of the company to be taken over;
- Advice on tax opportunities and possible optimisations;
- Analysis of the tax impact on the acquisition price;
- Advice on the guarantees to be included in the takeover agreement.
In dialogue with you, we discuss the tax implications and evaluate the impact during the due diligence process. We present our findings in a due diligence report tailored to your needs: from a concise to a thorough company analysis.
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