DUE DILIGENCE

Types of due diligence

• Financial due diligence: This type of due diligence focuses on analysing the financial position of the target company. The financial statements, balance sheets, income statements and cash flow statements are analysed. The aim is to assess the financial health of the company, identify hidden liabilities and check the sustainability of profitability.
• Legal due diligence: Legal due diligence examines all legal aspects of the company, including contracts, legal disputes, authorisations and compliance issues. This analysis helps to identify potential legal risks that could have a negative impact on the transaction or subsequent business operations.
• Operational due diligence: This examines the operational efficiency of the company, including analysing business processes, supply chains, production capacities and IT systems. The aim is to assess the company’s operational performance and identify areas with potential for optimisation.
• Strategic due diligence: This form of due diligence deals with the strategic orientation of the target company and the evaluation of its market position, competitive advantages and growth potential. It helps investors to assess the strategic fit of the company with their own goals and visions.
• Tax due diligence: Tax due diligence examines the tax situation of the target company, including past tax returns, tax liabilities and risks. This makes it possible to recognise tax pitfalls and exploit potential savings.

The due diligence process

The due diligence process usually follows a structured procedure that is divided into several phases:

1. Planning and preparation: In this phase, the scope of the due diligence is determined and a detailed plan is drawn up. This includes identifying the relevant areas to be reviewed and assembling a team of experts, including financial analysts, lawyers and industry experts

2. Data collection and analysis: In this phase, we coordinate the collection and analysis of all relevant data and documents from the target company. This includes access to the ‘virtual data room’, where all the necessary information is made available.

3. Evaluation and risk assessment: The collected information is now evaluated in order to identify potential risks and opportunities. All results are documented and summarised in a due diligence report.

4. Reporting and recommendation: At the end of the process, a comprehensive report is produced that summarises all the findings of the due diligence and makes a recommendation for the decision-makers. This report serves as the basis for the final negotiation and decision-making phase.

Thorough due diligence without surprises

Thanks to our many years of experience, surprises during the due diligence phase are rare. We recognise potential risks well before the due diligence phase and address them at an early stage. In this way, we ensure that nothing unexpected ‘intervenes’ in the final phases of the M+A process.

During the audit process, we coordinate all external and internal partners involved in the audit. From auditors to lawyers and from procurement to HR, a smooth process is guaranteed.

Our above-average completion rate is the result of our successful approach of specialising in strategic acquisition projects.

Thanks to our many years of experience, we not only consider the risk assessment, but also the evaluation of integration options and opportunities as part of the due diligence process. This is where an external perspective is particularly valuable.

Complete your transaction successfully – with us as your partner for comprehensive and structured due diligence.