Due Diligence

In addition to structuring corporate transactions, we conduct financial, tax and legal due diligence reviews.

In the area of due diligence, the main objective is to obtain as much information as possible about the risks of the target. The risks identified are taken into account, for example, in the subsequent company purchase agreement in the context of guarantees, other commitments or in the determination of the purchase price. The scope of the audit depends on the specific circumstances of the target and your wishes.

Basically, the following points are examined:

• Analysis and plausibility check of the planning calculations, the accounting system and review of the most recent annual financial statements
• Legal organisation and shareholdings
• Company-related assets and liabilities, contractual and other legal relationships
• Insolvency and other liability risks
• Economic circumstances and performance standards
• Status of tax assessments and appeal proceedings
• Status of tax audits
• Tax risks as a result of errors or a legal interpretation that differs from that of the tax authorities
• Assessment of risks in connection with restructuring in the past
• Analysis of transfer prices, fiscal unity and retention periods

Furthermore, in individual cases, a review and evaluation of the target company’s market, competitors and an assessment of future developments is possible.

The results of the audit are summarised in a comprehensive written report, which regularly also contains concrete recommendations on the drafting of contracts.