Due diligence is a comprehensive study and analysis of the business, which is a mandatory step in the implementation of M&A transactions. Due diligence is conducted for a comprehensive verification of information about the activities of the company put up for sale: financial, operational, marketing, commercial activities, legal aspects, etc. Experts participating in the due diligence (financial analysts, auditors, lawyers, environmentalists, etc.) are to identify all possible risks that can significantly affect the continued operation of the company being sold. Each group of experts is preparing a detailed report on the state of the enterprise. Their role is to most accurately assess the past, present and future state of the business.
Financial due diligence: evaluation of a company's ability to generate profit and the definition of financial risk. The analysis of income, expenses and cash flows, financial analysis of profitability, liquidity, solvency, financial stability, appraisal of the management system of the company
Marketing due diligence: evaluation of the current state of the company in the market
Operational due diligence
Legal due diligence: verification of the company for compliance with the civil, labor, corporate and tax law. Definition of legal risks
Tax due diligence
Environmental due diligence