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Due Diligence / Financial Opinion

Buying or selling companies, stakes in companies or other complex finance transactions involve a very hard work in due diligence. This is an extensive task with the purpose of identifying and assessing risks which have been discovered so far or which will be detected through the due diligence process. In many cases a team of specialists will be working on it for days or weeks.

A key feature of due diligence work is the “Letter of Intent”, a kind of pre-sales agreement which defines duration, areas and the necessary documents. This work is very often one of the last and very difficult steps to the completion of the sales agreement.

Beside this “classic” situation, we may also intervene when the customer wants to re-check a running transaction. This happens in the case of long-term financial transactions which are exposed to changes in the financial, tax, legal or accounting areas. Here the transaction runs the risk of being terminated early, which may involve substantial losses. Moreover we will also develop a final “general” independent estimation for transactions ready to be marketed.

Our core competence consists of analyzing coherence, as these transactions are often built in isolated blocks connected by interfaces and often checked by sector as well as by different persons. Our work is solution oriented. In case we uncover a risk which is unacceptable, we develop measures to reduce it. We believe that only a “substance-over-form” approach can generate productive transactions.

Therefore we keep in touch with tax authorities and administrations, which permits us to know the trends in tax legislation. A special benefit for our customers is that we provide information on an anonymous basis whenever this is possible.

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