A due diligence investigation – also known as an audit – is a valuable part of a merger or take-over process. It gives the buyer information about the company: is the purchase price realistic, were the assets valuated correctly, what does the costs structure look like, who is the ultimate beneficiary, what are possible risks?
Valuable information for the buyer
HLB Matchers is specialized in due diligence investigation. We can analyze financial, legal, tax, HRM, and IT risks; we have all those specialties under one roof. An audit can yield very valuable information. It can prevent unpleasant surprises or have influence on the take-over process. A due diligence investigation is of great value when you have to take strategic decisions.
What is a due diligence investigation?
In general, financial due diligence means the analysis of figures and possible obligations. HLB Matchers’ tax specialists can inform you about wage and sales tax, the corporate tax declaration, and other things. Has everything been paid completely and on time? Are their tax-related points of special interest? Our lawyers can inform you about the legal structure, current insurance policies and obligations (such as environmental permits and town and country planning), and the workforce, as well as any disputes and procedures with third parties. We will also investigate in the field of HRM, such as the strengths and weaknesses of the management team, pension risks, the staff turnover rate, possible labor disputes, and other staff issues. Moreover, our IT specialists will make an inventory of any technical, organizational, and legal IT risks. This is a very important part of the due diligence investigation, given the impact and importance of IT in organizations.
Vendor due diligence: ‘preliminary investigation’ by the seller
Due diligence is used mainly by a company’s potential buyer, but an audit can also be useful for the selling party. In that case, we speak of a vendor due diligence. This helps to reveals any points of special interested on time. This enables you, as a seller, to correct or repair things that are not entirely in order, so that nothing stands in the way of a successful sale.
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