Due diligence in practice

Carrying out due diligence

• Principles, practical preparation, data room review, use of experts, procedure, documentation and reporting of results.
• Core areas, criteria, data room content, structure of a due diligence report, buy-side due diligence, vendor due diligence, functional forms, recent developments in the implementation of due diligence (virtual data room).

Due diligence audits in the M&A process

• Occasions, position in the M&A process, areas of investigation, differentiation from the annual audit and other audits.

Areas of investigation - identification of deal breakers

• Balance sheets, profit and loss accounts, financial and liquidity situation of the target company, planning calculations, information systems (external accounting, controlling, MIS, risk management, etc.), tax situation.

Consideration of the results of the due diligence

• Valuation of the target property, adequacy of the company accounting system, analysis of the historical earnings situation, asset risks, plausibility checks, potential analyses.

Contract negotiations

• Negotiation process, contractual assurances and warranty regulations.

Costs and liability for due diligence

• Costs for due diligence.
• Tax treatment of futile consultancy costs.
• Input tax deduction for the assumption of costs and due diligence services.
• Liability regulation for auditors and other parties involved.

People as a success factor

• We take a comprehensive look at the people involved, whose perspectives, needs and liability risks play a not insignificant role in this process.