Due diligence

dueDue diligence means provision of information to an investor on the current tax and financial situation of the company. It is also used to check the financial performance of the company and as a basis for setting up effective functioning of the company.

It eliminates problems which could not be discovered without the due diligence. Due diligence serves primarily investors who wish to take over another company.

Thanks to a high-quality due diligence they are informed about the current tax position of the company and all risks associated with the operations, financing, ownership and legal form of the company.

This way they eliminate financial and other problems or circumstances which would not be revealed without the due diligence.

Due diligence can either focus only on selected liabilities and assets, or on the overall balance of the company. Or, as the case may be, it is possible to specify the areas which will be covered by the due diligence. In a financial due diligence we focus on a detailed itemized analysis of the reports, differential and ratio indicators and the analysis of their development in time. And above all, we also monitor the indicators of economic performance.

We check the financial, tax and legal information in order to provide a detailed picture of the strengths and weaknesses of the company and prepare it for the takeover, if any. In a tax due diligence we inform the client about the current tax position of the company (taxes to which it is subject, relationships with the tax administrator, amount of the usable accumulated tax losses, etc.), we evaluate the tax risks associated with the operations, legal form, financing and ownership of the company, and we will suggest further actions within the transaction in order to optimize the resulting tax burden.

The outcome of the due diligence is a detailed report with overall evaluation of the condition of the company, description of the risks, and recommended solutions.

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