Financial due diligence
Due diligence is a complex overview of legal and economic history of the company before entering into a deal (sale, loan, investments, etc.). As a rule, due diligence is a time-consuming process, which includes a detailed analysis of the following segments of the company:
Due diligence allows to identify all existing risks (legal, financial, tax, management, technology, etc.). Research within the due diligence allows determining the “adequacy” of price required by the seller (paid by the buyer) or investments attracted for specific projects. Very often the results of due diligence are being a base for decision making to buy (not to buy) or to invest (not to invest).
Due diligence consists of several stages:
Legal expertise. As a part of the due diligence, it allows identifying any legal risks and their impact on the object’s value.
Financial expertise is a one of the main stages of the due diligence. It allows defining the “transparency” of management accounting and bringing it into conformity with requirements of an investor. Further, optimized reporting data can be used for appraising the object.
Tax audit is a mandatory part of the due diligence. It allows determining risk levels of tax schemes. High tax risks may have effect on to results of appraisal and reduce the object’s value.
Appraisal and express-appraisal. As a part of the due diligence, it allows determining the objective (fair) value of the object. While doing the appraisal our specialists implement international valuation standards as well use common valuation methods and apply own skills gained from the professional experience in Turkmenistan.