The due diligence investigation maps out the risks, examining potential financial, fiscal, pension, legal, operational or administrative pitfalls.
Our specialists at Grant Thornton also pay special attention to transfer pricing. This is an absolute necessity now that the rules for transfer pricing are increasingly stringent. Independent due diligence study is advisable for both the seller and buyer. After all, the selling party has a duty to report all essential information, while the buying party has to meet an inspection requirement.
The goal of the due diligence investigation is to obtain an understanding of a company’s financial, fiscal and pension risks. How are existing and future requirements constructed? How much are the assets worth? How constant are the future earnings forecasts, how does the working capital develop, what are the exact debts of the organisation on the transfer date and how do the historical results compare to the forecasts?
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Due diligence reporting
Will the purchase eventually take place through the sale of shares or through the takeover of assets? We take stock of and suggest solutions for the best possible merger structure and payment mechanisms (Cash/debt free or locked box). Due diligence reporting can also serve as an accountability instrument for financial institutions and investors.
Tailor made due diligence
The intensity of due diligence can also vary. Grant Thornton offers different ranges a brief examination of the books (limited scope or quick scan), a complete due diligence investigation (full scope), and a complete due diligence investigation with transfer support (full scope + transaction support).