Financial and tax experts, as well as lawyers and accounts work together to conduct independent reviews of various aspects of businesses. Depending upon the specifics of a transaction and the participants involved, there may be additional experts required for the Due Diligence process (actuaries, engineers etc.) A review can be as complex or as specific as necessary to assist parties in the evaluation of various investment projects and transactions, such as the purchase or sale of a business, the creation of a joint business venture or a merger.

 WatersOAG conducts research in three areas:

 1.  Financial Review – to determine a company’s financial stability and its prospects for further development.

•  A review of fixed assets;
• A review of the structure of revenue and expenses;
• Summary of company accounts payable and receivable;
• Risk assessment and the financial burden of borrowing;
• A review of additional aspects such as payroll and mortgaged assets.

  2. Legal Review – to identify legal risks.

• A review of the founding documents and the legitimacy of decisions by management;
• A review of property rights (paper/monetary assets and real estate);
• A review of such assets as patents, trademarks, trade names and copyrights;
• A review of potential disputes with third parties and the possibility of litigation;
• Identification of the possibility of claims by contractors and state authorities;
• A review of the company’s compliance with regard to labor legislation;
• A review of the existence of required licences, authorizations and permits;
• A review of business operations specific to the business.

 3.  Tax Review – to determine any tax risks and the severity of the company’s tax burden.

• A review of budget calculations for taxation and other obligatory payments;
• A risk assessment of claims against the company by tax authorities.

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