Due diligence (DD) is a detailed verification of the current state of the enterprise, carried out by the investor before the transaction to confirm his understanding of the business situation. One of its variants is vendor due diligence, prepared by the seller as a structured collection of information about the enterprise for the purposes of investor DD . Most often DD covers areas: financial, legal, tax and market (commercial), often also organizational, technological and environmental.
We provide full legal and financial DD service thanks to our qualified team with many years of transaction and investment experience. As part of DD, we can offer a strategic analysis of the company’s position and possible directions of business development as well as an assessment of the attractiveness of investments and scenario analyzes of return, providing arguments to negotiate the purchase price and transaction structure. In the field of legal DD – using lawyers-specialists from many fields – we can analyze legal issues at a very high substantive level in detail, searching for potential legal threats and risks. This is extremely important in the event that in the sold business there were no ongoing analyzes of the conducted activity with constantly changing regulations.
We maintain relations with the best market experts in the field of taxes, management, technology and the environment, at client request we are always able to recommend the right entity to conduct an exhaustive DD from a given area.
Determining the value of an enterprise is a key starting point in acquisitions, both from the perspective of the buyer and seller of business.
The valuation is the basis for negotiating the price, structure and terms of the transaction. It provides the seller with an information, detached from emotions and personal judgments, about the obtainable sale price and is the substantive basis for maximizing it. Similarly for the buyer, it is a tool to negotiate the best possible purchase conditions, it also indicates key areas shaping the value of the company in the long run and achievable returns on investment in a given business.
We prepare financial models and valuations for the needs of M&A transactions both on the seller- and buyer side.
In our work, we rely on common investment market practices, tailored to the character of an investor (financial, industry, individual), taking into account their different expectations related to the transaction, its purpose and potential return on it.