Due Diligence

  • Possibility of urgent online consultation
  • Confidentiality of process
  • Tax specialist advice
  • Follow up process in English
  • Audit focused on tax compliance
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In which situations Due Diligence services required

Such a diverse check helps to reduce risks or avoid them in any transactions with counterparties. The price of due diligence is small compared to the costs or losses it prevents. But still there is a list of situations where an audit is indispensable. The first step is to contact experts and start with check:

  • with the planned purchase of other companies, their mergers, acquisitions;
  • if the company decides to buy securities or shares of another company;
  • when buying various types of real estate;
  • before starting work with new partners;
  • in cases it is necessary to provide funds on loan;
  • if targeted investments are planned.

In addition, verification is needed in any situation where the correctness of the information provided by the parties may affect the outcome of the transaction. This is especially true when it comes to financial transactions or property for a large amount.

Even if the information provided by the experts indicates that the counterparty provided reliable data, they should be used during negotiations and when discussing the terms of the contract. With this information, you can reduce the price of the transaction or negotiate more favorable terms.

How is the price of Due Diligence formed?

  • Depth and area of check: terms of reference
  • The size of the staff of the audited company
  • Annual revenue
  • Availability of licensed activities
  • Meeting format: online or face-to-face meetings
  • Language of document preparation and process
  • The need to participate in the negotiation of the terms of the transaction and negotiation
  • Development of necessary documentation
  • The need to independently request documents and information from authorized bodies with the exception of information from open sources
  • The need to attract additional specialists

What will be the result of Due Diligence

  • Report with ranking of identified risks
  • Setting deficiencies and ways to eliminate them
  • Analytics of accounting and tax accounting
  • Report on documentation for compliance with legal requirements
  • Conclusion on the investment attractiveness of the asset
Valentina Khlavich
Managing Partner
  • Law degree in the Russian Federation
  • Studied at the University of Passau, Germany
  • Foreign Languages: English, German
  • Since 2007 a lawyer in Beiten Burkhardt lawfirm
  • Since 2012 founder and managing partner at VALEN

Since 2012 in list

More about Due Diligence

Before buying a business or any assets, you must order Due Diligence. This is a comprehensive check that allows you to collect information about the object that the company intends to acquire. It is necessary to make sure that the financial investments are justified. In addition, due diligence allows you to predict tax and financial risks, possible difficulties.

One of the goals of such a service is to determine the financial condition of the acquired business. The potential owner receives information on accounting, tax accounting, the cadastral state of affairs, as well as a conclusion on the investment attractiveness of the asset.

The Due Diligence service allows you to determine:

  1. To what extent tax, accounting, financial reports were formed correctly and in a timely manner
  2. What is the degree of competitiveness of the enterprise
  3. Management Competence Level

The check is divided into two main parts: legal and tax

The results of both directions will give a complete picture of the feasibility of future investments. With their help, you can form an objective opinion about how justified these investments are. For enterprises of different profiles, marketing, operational, and financial audits can also be carried out. In any case, the due diligence price is lower than the possible risk.

Legal Due Diligence

In this case, the Due Diligence service is aimed at assessing all kinds of legal risks. This is done in order to adequately assess possible difficulties, as well as to exclude or minimize any negative consequences from the conclusion of a transaction or the purchase of assets.

For example, legal due diligence finds out whether the acquired company has litigation, whether its property has been partially or completely arrested, what are the risks that the transaction may be declared invalid.

This procedure includes:

  • detailed analysis of constituent, primary and other documents;
  • verification of the authorized capital, the rights of co-founders, the legality of the formation of the company's assets;
  • verification of movable and immovable property of the proposed object for investment;
  • finding out if there are any litigation, seizure of property and other risks;
  • analysis for possible claims from the company's creditors or counterparties;
  • checking for licenses and permits;
  • confirmation of conscientious observance of labor, migration and other legislation;
  • analysis of document flow and work of management bodies.

Tax Due Diligence

It is worth ordering Due Diligence of the tax sphere in cases where it is necessary to find out how the acquired company fulfilled its tax obligations. This is necessary in order to predict claims or lawsuits from the Federal Tax Service or other government agencies. All these activities are aimed at reducing tax and financial risks, and also give an idea of what the real value of the transaction is.

During the check, the following actions are performed:

  • company accounts are studied, tax and other payments are analyzed;
  • the company's tax and accounting systems are checked;
  • the compliance of financial documents and systems with the requirements of the law is assessed;
  • the tax burden is diversified;
  • tax and financial risks are predicted, and recommendations are developed to reduce or eliminate them;
  • the general tax situation is analyzed, prospects are predicted, taking into account possible changes in legislation.

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Leading Lawyers

Valentina Khlavich
Managing Partner
Thomas Relja
Partner
Eduard Ioffe
Partner
Dmitry Kofanov
Partner
Valentina Khlavich
Managing Partner

Law degree in the Russian Federation

Studied at the University of Passau, Germany

Foreign Languages: English, German

Since 2007 a lawyer in Beiten Burkhardt lawfirm

Since 2012 founder and managing partner at VALEN

Our specialists
Thomas Relja
Partner

Economics Degree

Foreign Languages: Croatian, English

5+ years as a head of Accounting and Finance in European Companies

2+ years as a SAP consultant for companies in Germany (Munich) and UAE (Dubai)

Partner at VALEN

Our specialists
Eduard Ioffe
Partner

Graduated Moscow State Law Academy under name of O.E. Kutafin (MSAL) in 2012

Foreign languages: English, Latvian

Experience since 2012 – in legal consulting, banking, private equity and sports law

Since 2021 – Head of legal in VALEN

Since 2022 – Partner/Head of legal in VALEN

Our specialists
Dmitry Kofanov
Partner

Certified Lawyer in the Russian Federation

Experience since 2003 – in Russian and foreign law firms

Since 2021 – partner at VALEN

Our specialists

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Due Diligence services by Valen experts

Valen lawyers offer you to prepare Due Diligence at price that is significantly lower than possible losses and risks. Our employees are competent in a different areas of law, so they can evaluate possible deal consequences from all sides. Moreover, we closely cooperate with other experts, so we guarantee to provide you with full information about acquired property or business.

At the end of the process of check we will provide the client with extended report in the convenient form. If required, we would explain the details and point information that can be used to obtain better terms of the deal.