Due Diligence

Due diligence is understood as the careful analysis and evaluation of a company against the background of an intended business transaction. The work carried out in a due diligence review is aimed at critically looking at the company to see whether there are any problems that could lead to costs in the future that could justify a reduction in the price / value at the time of the transaction. The “silent“ and concrete opportunities of a company should also be investigated.

Occasions for a due diligence for medium-sized companies could be:   

• The purchase/sale of a company or part of a company
• The contribution of companies or parts of companies
• The merger of companies
• The purchase of shares
• Granting credit for a company.

For a due diligence in the case of medium-sized companies, there are no fixed rules that apply equally to all companies. This is why we proceed on the basis of each individual company when it comes to carrying out a due diligence review, because what seems to be extremely important for one company can be completely insignificant for another.

Mostly on the basis of a letter of intent, we will carry out the following due diligence investigations with a select, qualified team, which from case to case can consist of public accountants, lawyers and tax consultants.

Financial due diligence

• Recording the economic basis of the business activity
• Investigating the asset, finance and income history
• Analysis/plausibility of planning; recognition of risks and opportunities

Tax due diligence

• Recording the tax situation; recognition and analysis of potential tax risks
• Tax planning with reference to the later transaction structure

Legal due diligence

• Analysis of the legal relationships of the company to its stakeholders (creditors, suppliers, employees, customers, tax authorities, management, uthorities due to conditions)
• Recording and legal evaluation of the internal legal structure.

Finally, our on-site investigations lead to a report to our information recipients (clients such as shareholders, managing director, board of directors, banks, etc.) either in the form of a brief presentation (short-form presentation) or a formulated report (long-form presentation).