Any company acquisition offers opportunities, but also involves risks. To enable the buyer to gain an overview of the company to be acquired, a due diligence review is usually performed once a letter of intent (LOI) or purchase agreement has been signed. The purpose of a due diligence review is generally to detect the financial and tax risks and opportunities associated with the company acquisition. Furthermore, a commercial due diligence review addressing conditions in the relevant industry and the market and competitive framework may also be performed.
A financial due diligence review generally involves analysing the performance of the company to be acquired in the past three years and checking the plausibility of the company’s budgets for the following three to five financial years.
Working together with you, we determine the required degree of detail (quick review, full scope) and the focuses of the financial due diligence review.
A company sale often places an enormous burden on companies in terms of time and personnel resources, and that especially at smaller and medium-sized companies. To ease the strain on company resources and prevent any unrest arising due to rumours circulating about the sale, it makes sense to commission a vendor due diligence review.
We would be glad to organise for you the so-called data room, in which the information usually requested by investors is made available. A data room may be provided both physically and in electronic form.
Our advisors have performed due diligence reviews for strategic investors (e.g. industrial companies) and financial investors (e.g. capital investment companies).