Due Diligence

Planning an acquisition?

May we assist with identifying the financial and tax issues?

A proper Due Diligence (DD) limits the risk for an unsuccessful acquisition. In a Due Diligence process, potential financial and tax risks are identified before entering into the deal.

The Due Diligence provides a potential buyer/provider of finance with financial information about the target company and ensures that the information provided by sellers is accurate.

Grant Thornton is constantly performing DD-engagements for various business sectors in connection with acquisitions, financing transactions and listings.

Typical elements of a Financial Due Diligence process are:

• Getting an understanding of the target company’s business operations
• Review of historical trading and the financial position
• Understanding the basis for prepared budgets and financial forecasts
• Review of the balance sheet structure and the significant asset and liability components
• Analysis of cash flow and working capital
• Identifying interest bearing net debt, and net debt like items
• Understanding the current tax position and risks and opportunities involved
• Summarizing the financial administration and reporting systems
• Identifying off balance sheet items

Every transaction is unique and therefore it is important to tailor the Due Diligence work to be performed on a case by case basis in order to maximize the benefit from the procedures.