Prior to the acquisition of shares and stock or enterprises as commissioned by legal entities or private individuals, we compile a due diligence analysis procedure for financial and tax areas.
Scope of Due Diligence Procedure:
- Review and analysis of specific items contained in the Profit & Loss Account in subsequent periods.
- Analysis of sales revenues and operating expenditure (by type of operations, direct and indirect costs, depending on data available.)
- Analysis of other operating and financial revenues and expenditures.
- Analysis of key working capital items (liabilities, receivables, stock) with special consideration of the realistic aspect of receivables disclosed as well as usefulness of existing stock in operations.
- Analysis of existing fixed assets. Financial analysis of the Company.
- Conducting interviews with the management and Company representatives in relation to documentation and information submitted.
- Analysis of adequacy of tax settlements, in particular as follows:
- Materials from tax audits if applicable.
- Analysis of interpretations from tax authorities if applicable.
- Analysis of adequacy of settlements on corporate income tax with particular attention to non-deductable costs.
- Analysis of transactions conducted with related entities.
- Adequacy of tax settlements.