Conducting an Independent Review (Due Diligence)

Due Diligence

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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