Every investment requires preliminary evaluation of the project in which it is invested. This is what Due Diligence is for.
By the term Due Diligence we mean the comprehensive investigation of the activities and financial standing of a company (or a group of companies) which are the subject of investments or purchase. It is a system of measures aimed at a thorough verification of the validity and commercial potential of the planned deal or investment project.
“Audit Company FORPOST” LLC offers services for the evaluation of companies' financial and economic activities to its clients who are going to acquire or invest in a going concern.
The results of Due Diligence help our clients to:
- Obtain reliable information on a company's activities, assets, operations and production;
- Take measures against the company's overstatement of its assets and concealment of its debts and losses;
- Analyze past business profitability and the probability of future cash flows;
- Identify whether the company has any material risks and its possible liability for committed violations;
- Agree upon which of the parties will remedy the identified violations, and in what manner and at which stage;
- Define the fair value of the company and its stock or other assets;
- Determine the procedure for acquiring control over the company and structure the transaction;
- Upon closing a deal (deals), define, where necessary, the seller's guarantees regarding the company's risks;
- Refuse acquisition (investment) if the degree of unavoidable risk is unacceptable to the potential buyer (investor).
For the audited company, thorough investigation contributes to a more precise definition of the methods and means of disclosing information about the company to buyers or investors.
The Due Diligence procedure is conducted by experienced and highly professional group of specialists which includes lawyers, auditors, accountants and appraisers. Other specialists may also be involved if necessary.
The result of Due Diligence conducted by our specialists will be a Written Report containing:
- An analysis of the activities of the investigated entity;
- A list of the documents and information analyzed;
- A list of identified risks and the assessment of their probability, as well as possible ways to minimize them;
- A fair assessment of the value of the audited entities, if required by the client; and
- Other information, conclusions and recommendations, depending on the client's requirements.
The proposed cost of Due Diligence will be formulated based on the client's requirements and take into account the estimated time to be spent by specialists required to conduct the procedures to a high standard and in a timely manner.