Due diligence
In the world practice Due Diligence is a very common procedure, since the requirement of transparency when interacting with a partner is one of the main ones in a serious business. Every company that intends to conduct any transaction wants to be sure of its reliability and profitability. Such confidence can be only based on complete and a reliable information about a potential partner, the collection of which is conducted in the process of Due Diligence.
We suggest a comprehensive due diligence, the main stages of which are the tax, financial, legal and operational Due diligence. As a result, we provide an objective report for your company, including a description of the potential risks and recommendations for minimizing them. Also, we carry out separate stages of complex Due diligence based on a client request.
Tax due diligence is an analysis of financial and economic activities of a company in order to determine business’s current financial position and to identify potential tax risks. Unicorn Solutions & Consulting conducts the analysis of tax and accounting statements, the main types of activities and fixed assets of the organization, including inventory of property, financial investments, accounts receivable, payment of mandatory settlements and identification of hidden accounts payable, as well as verification of counterparts.
Operational Due diligence is a special research of the management system of the company as a whole and/or its individual subsystems for assessing the quality of management, the presence of risks, the efficiency of reserves production, and the development potential. It includes assessment of the availability and quality of such management systems as strategic, operational activities, production, quality, personnel, external relations, procurement, sales, as well as studying the quality of administration and security systems.
Legal due diligence is legal expertise of company’s activity in correspondence with current legislation. It Includes legal expertise of constituent documents, title documents for each asset, contracts with counterparts, permits, maintenance of claims and lawsuits, labor relationship.
Financial Due diligence is definition of key indicators of financial condition of the company and their analysis in order to assess the prospects for acquisition of a business and its subsequent development. The analysis includes assessment of market value of the business, calculation of financial stability, solvency ratios and business activity.
As result of Due Diligence, you receive complete and comprehensive information about the company, allowing you to make a decision on whether to make or refuse the deal; possibility of adjusting price of transaction in its favor on the basis of identified risks; the opportunity to eliminate the identified risks before the transaction, reduce your financial losses, and get recommendations on the acquisition scheme.