Due Diligence is highly important for the completion of an agreement, the determination of the final price and the formulation of the individual terms for the contracting parties. It is the process through which the prospective buyer identifies the risks involved with the forthcoming acquisition.
This risk is mostly associated with
1. Legal issues, which include:
- obligations and rights related to the legal form of the company
- obligations and rights arising from the use of Trademarks, patents, contracts for distributing or manufacturing products of third parties
- pending legal engagements with third parties, the State, suppliers, employees of the company
- liabilities arising from employment contracts, private company agreements with third parties, etc.
2. Operational and organizational issues, including:
- obligations and rights arising from the operating license for the facilities of the targeted company
- assessment of the equipment’s condition on the facilities
- mapping out the operating procedures and the company's staff adequacy
3. Financial issues, including:
- capture and analysis of the company’s targeted annual results over a 5-year period
- a detailed record of the company’s outstanding financial liabilities and its expected revenues over the same period
- Viability assessment of the targeted company’s existing business plan (if applicable)
Relying on its executives and in cooperation with teams of certified auditors, accountants – tax consultants, as well as a specialized law firm, Access Wise Partners is in a position to fully support both the buyer and the seller for the coordination and successful completion of this process
