Due Diligence
Due Diligence Due Diligence services are provided as and when required based on client needs. A classic example of Due Diligence services is the performance of limited procedures agreed with the client (Agreed Upon Procedures). These procedures are intended to review accounts or financial statements in relation to acquisitions of companies, businesses or business units. In such cases, our professional staff collect and analyse the financial, fiscal, commercial and legal information made available to us by the target company – this may be carried out in a data room environment or by means of direct access to the target company. Finally, our Due Diligence work is completed by analysis of historical, current and projected profit trends; this also includes the determination of normalised profit levels. The benefits that these services provide to the potential buyer include increasing the likelihood of a successful deal by highlight the related risks and benefits. The potential buyer is also supplied with clear information about the normalised profitability and cash flow of the target company or business. However, Due Diligence services can also be applied in many other ways, as selected based on the objectives of the client. Some of these possible services are listed below:
- assistance to the buyer in relation to business acquisitions;
- assistance to companies in relation to the sale of business units/divisions or equity investments; the assistance involves preparation of specific documents presenting the business units or companies for sale (“Vendor Due Diligence”);
- review of financial statements or specific account balances for internal business purposes (management, shareholders, etc.);
- determination of price adjustment in relation to deals regarding businesses or business units (also as arbitrators);
- support with preparation of balance sheets, income statements and cash flow information required for deals;
- compulsory appraisals/valuations in relation to start up or share capital increases based on contributions in kind;
- analysis of income statement and cash flow projections;
- specific support with:
- preparation of pro-forma financial statements for extraordinary operations:
- valuation of businesses or business units;
- business restructuring;
- business finance.
- preparation of pro-forma financial statements for extraordinary operations: