When providing comprehensive services, including legal, tax and financial assistance, we have the opportunity to perform a detailed assessment of the condition and potential risks of the company to be acquired or sold (asset-liability ratio, security obligations, possible claims, etc.).

Due diligence provides a detailed overview of the company. Due diligence is an important part of every purchase transaction, helping investors to take a closer look at all aspects of the company before the planned transaction. The information gathered during due diligence is also used in negotiations and helps to identify the risks to be hedged in the sales contract.

Due diligence is a thorough business financial, tax and legal analysis of the acquired company. As a result of the analysis, we will prepare a report that provides a detailed overview of the audited company so that you can make an informed decision. This allows for a better understanding of the company's business model and key growth factors, the risks identified in the analysis and recommendations for dealing with them. The information gathered during due diligence will also be used in negotiations.

 

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The extent of due diligence depends on the transaction and the controlled entity, but may focus on, for example:

  • Quality of earnings - validating management adjustments, considering findings in the due diligence and one-off items, and the impacts of accounting estimates;
  • Historical trading results - analyzing growth drivers, top customers, revenue and margin development per client, segment or product and KPI’s relevant to the field;
  • Analysis of net debt to identify potential debt-like items and the seasonality and requirements of working capital;
  • Quality of financial and management reporting - commenting on the finance functions and controls, reporting and budgeting process etc.

Due diligence directions:

  • Financial analysis
  • Legal due diligence
  • Tax analysis
  • Financial analysis
    Financial analysis
    A financial due diligence differs from an audit of financial statements in that it analyzes and explains the causes and drivers of changes in financial performance and business performance.
  • Legal due diligence
    Legal due diligence
    Legal due diligence looks for information about the business to make sure the investment or purchase is worthwhile. The purpose of the investigation is to reveal all relevant facts and possible liabilities.
  • Tax analysis
    Tax analysis
    The purpose of the tax analysis is to assess whether the company's current situation corresponds to Lithuanian or foreign tax norms. Tax experts perform premium analysis, identify tax risks and review historical tax archives.

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