DUE DILIGENCE

Due diligence is a set of steps used to analyze the financial health of an organization.

Due diligence is usually performed in tandem with an audit or property appraisal.

Due diligence is required in the following circumstances:
- Buying or selling a business
- Initiating mergers and acquisitions
- Establishing joint ventures
- Preparing for public offering of securities
- Evaluating of potential investment candidates
- Evaluating the reliability of business partners
- Looking for problems in a company’s operations

We offer the following types of Due Diligence:
1. Legal Due Diligence:
- Verification that a company’s founding documents comply with applicable law
- Verification of the legitimacy of resolutions passed by the CEO, Board of Directors or shareholder meeting, as well as analysis of the minutes of shareholder meetings to verify the legality of resolutions
- Verification that a company’s current owners have legal right to the company
- Discovery of critical risks at company founding (payment of capital stock, registration of share issues)
- Verification of a company’s title to fixed assets
- Verification of encumbrances and titles to land, buildings, etc.
- Verification that a company is properly licensed for its main business activity
- Discovery of risks, qualification of key business contracts, discovery of potential claims by counterparties or government agencies
- Analysis of any tax disputes and methods of defense from tax claims (such as payment of potential shortfalls before the initiation of tax control measures)

2. Tax Due Diligence:
- Providing a complete picture of a company’s tax liabilities
- Discovery of existing tax risks
- Evaluation of the likelihood and impact of tax sanctions
- Discovery of any recorded or unrecorded overpayments of tax
- Evaluation of risks relating to the legal status of counterparties

3. Financial Due Diligence is the best way to get an objective appraisal of a company’s overall condition, including any risks that could have a significant impact on its finances in the future, as well as recommendations to reduce such risks.

4. Organizational Management Due Diligence:
- Analysis of the history and future growth prospects of an entire company and/or specific lines of business
- Analysis of a company’s form of ownership
- Evaluation of a company’s organizational structure and corporate management, as well as its functional and human resources structure
- Evaluation of the effectiveness of the entire management system and specific strategic tools
- Evaluation of current business processes, including underlying regulations and effectiveness

5. Marketing Due Diligence is an effective way to evaluate the internal and external risks involved in sales and purchasing and discover any unfavorable market trends.

Your consultant: Andrei Zabegayev