Due Diligence - is one of the key stages of the company acquisition, a unique procedure of «comprehensive investigation of information certainty».
Due Diligence - an assessment financial and economic activity of the enterprise which allow the consumer to reduce risk of impact on unpleasant unexpectedness which can arise after signing the deal. In fact Due Diligence means checking the object of deal on availability of risks which can affect the validity of the deal or pass together with the object of the deal to the counterpart, reducing the value of purchasing object and consequently the price of the deal. Volume of the Due Diligence depends on several factors and depending on a situation, can vary from the express train-diagnostics of the enterprise up to the complex and deep analysis of all aspects of a condition and activity of the enterprise. Due Diligence anticipates decision-making on purchase of assets, at structuring of transactions, and it is recommended to be carried out during attraction of financing, searching for investors and in other cases.
"ORIENT CAPITAL MANAGEMENT" offers services on carrying out of complex diagnostics on the basis of Due Diligence. The similar analysis is held concerning corporate, legal, financial and tax aspects of activity of the object of the deal. Within the limits of Due Diligence the constituent documents of the company (group of the companies), structure of the share capital, authority of company bodies of are analyzed, availability of necessary resolutions, coordination with the government bodies, established by current legislation is also provided. The property rights on the main company assets (group of the companies), the objects of real estate, the right to the land areas, licenses, trademarks, the basic treaty obligations of the company are also analyzed, the litigations in which it participates is also assessed. The diagram of commodity-money streams of the company (group of the companies), the accounting and administrative reporting are analyzed during the financial inspection
According the taxation the existing structure of tax obligations, correctness of calculation and payment of the taxes, applied mechanisms of tax planning is checked and analyzed.
The result of carrying out of complex diagnostics is the detailed analysis of risks, main reasons of an inefficiency of the structural interaction, revealed during carrying out of the analysis, and also recommendation Orient Capital Management on their minimization and elimination. Volume of the task on Due Diligence, terms of its performance and cost of works preliminary discussed with the client.
21 June 2010
10 February 2010