Due diligence

Due diligence is a process of careful analysis carried out to enable a thorough assessment of an object, a business partner or a transaction. Due diligence identifies the strengths, weaknesses, opportunities and threats of a transaction or a business relationship. Managers can then make an informed decision based on the results obtained.

In business, due diligence is used in a number of situations. Most frequently, it takes the form of a business valuation for a company acquisition (buyer due diligence) or company sale (sell-side due diligence, also referred to as vendor due diligence, VDD). Due diligence is also mandatory for an initial public offering (IPO). Additionally, companies carry out regular risk assessments on new and existing customers for money laundering prevention purposes (customer due diligence).

Business valuation

Due diligence and business valuation

A corporate transaction is a highly complex process. Whether you are a buyer or a seller, professional due diligence is something that no party can do without. Only with an in-depth analysis can the value of the company concerned be determined and an appropriate purchase price be decided. A careful due diligence is the basis for any decision for or against a particular transaction.

Due diligence is carried out by a neutral third party, usually a certified public accountant, lawyer or tax advisor. For the buyer, buyer due diligence is about examining the strengths and weaknesses of the business it is buying and evaluating future business opportunities. This information, presented in a due diligence report, is used to determine and substantiate a purchase price. In sell-side due diligence, or vendor due diligence, the company is scrutinised from a different perspective. The seller prepares for negotiations by uncovering any weaknesses that can be eliminated before the transaction takes place. In both buyer due diligence and sell-side or vendor due diligence, the focus is on the potential price for the corporate transaction.

Careful due diligence with Schultze & Braun

Whether you are a buyer or a seller, Schultze & Braun can help with due diligence. Our certified public accountants, lawyers and tax advisors are specialists with extensive experience of carrying out both buy- and sell-side due diligence. In our due diligence work, we combine the extensive experience of our certified public accountants, lawyers and tax advisors with modern analytical methods. We also advise and support you during the M&A process and provide secure virtual data rooms for relevant documents.

We at Schultze & Braun will undertake a business valuation of the target company and a careful risk assessment to evaluate and analyse the business model, taking all economic, legal, fiscal and financial aspects into account. This risk assessment serves to protect and assert your interests, but also gives you security vis-à-vis potential business partners – before the sale and purchase agreement is signed. That means you can make an informed decision.

What can we analyse for you?

Contact

Oksana Miglietti
Wirtschaftsprüfer (Chartered accountant), Steuerberater (Tax consultant), Dipl.-Kauffrau (FH) (certified business accountant)

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Call +49 7841 708-400 Direct message

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