The Due Diligence procedure involves joint working of ICLC specialists in several directions: auditors, lawyers, experts in the field of management.
The study will provide comprehensive and credible information on the commercial attractiveness of a planned transaction or an investment project.
Due Diligence includes:
- comprehensive legal analysis of the company's activity, its corporate and management structures;
- analysis of emergence / termination of the company’s rights to assets (real estate, substantial movable property, intangible assets, etc.;
- analysis of emergence of encumbrances of the specified assets, as well as of liabilities (contractual relationships and loan and credit obligations, etc.);
- analysis of accounting statements for presence of signs of possible misstatements;
- review of the accounting system, and the main provisions of the accounting policy;
- analysis of the income and expense structure;
- verification of the company’s assets and liabilities posted to its accounting statements, including identification of assets that are not able to yield economic benefits in future, and determination of non-posted liabilities;
- determination of contingent liabilities presence.
In addition to this, we will:
- analyse the tax burden;
- verify correctness of calculation of the main taxes and formation of tax bases;
- verify correctness of completion of tax returns, validity of use of tax benefits, and compliance with the payment discipline;
- estimate the probability of tax disputes.
The Due Diligence result is a detailed report containing a description of state of the business or an object, list and assessment of risks (legal, financial, tax risks), and recommendations on how to minimize them.