Business due diligence plays a key role in transactions in the phases of evaluation and implementation of the deal as well as the increase in value after the transaction has been concluded. With their help, a detailed picture of the target company is obtained, which you can use as a basis for decision-making and information for the entire transaction and beyond.
In order to be able to correctly identify the value lever of a target company, we offer you an integrated and holistic approach in which the modules commercial, financial, tax and operational can be combined in a comprehensive business due diligence.
You have the choice of which of the individual modules you want to include in the business due diligence. Our goal is to be able to give you specific recommendations for action.
Our services in the area of business due diligence
- Evaluation of the annual financial statements for the last financial years
- Determination of the sustainable achievable income and cash flow of the target company
- Checking the plausibility of the business plan
- Review of the accounting and valuation scope according to HGB or IFRS
- Creation of sensitivity analyzes
- Support in determining the purchase price
We will give you answers to the following questions:
- What is the target company’s asset, financial and earnings position?
- Which strengths and weaknesses have to be considered?
- Is the transaction even worth it? Clarification of obligations in connection with withholding taxes for foreign private individuals and companies
- Analysis of the tax situation of the target company
- Identification of tax risks
- Elaboration of a tax-optimized transaction structure
- Recommendations with regard to contract drafting (tax clauses and guarantees)
In operational due diligence, we analyze the target company’s value chain with the aim of identifying potential for value growth. The investigations focus on the following functional areas:
- Marketing & Sales
- Research and Development
- Purchasing
- Production and materials management
- Logistics and supply chain
- After sales and service
In our experience, the following questions are in the foreground:
- What potential for added value does the company offer?
- Can productivity reserves be increased?
- Will the planned sales growth be supported by suitable new developments?
- Are there sufficient development and production capacities available for growth?
The aim of commercial due diligence is to validate the extent to which the strategy of the target company does justice to the respective market conditions and long-term market, competition and technology trends and whether the assumptions in the business plan sufficiently reflect the market environment and the strategy.
We analyze the following subject areas:
Market and competition
- Segmentation into the individual business areas
- Relevant market size and growth
- Technical trends and innovations
- Competitors and barriers to entry
Strategy and positioning of the target company
- Market position, position in the value chain
- Sustainability of the business model
- Strengths and weaknesses
- Unique selling points compared to the competition
Business plan and strategic options
- Essential assumptions on market volume and growth, market shares and price / quantity structures
- Opportunities to change the business model
Our legal cooperation partners carry out the legal due diligence for you.