Due Diligence

	Contacts: Alexander S. Ivanov Deputy  Director General   Vladimir A. Vinogradov  Chief Project Consultant   +7 (495) 221-24-15   ivanov@pacioli.ru, vinogradov@pacioli.ru

Due Diligence is a procedure of formation of fair opinion about the investment object.

The goal of Due Diligence is to define the exiting and possible entrepreneurial risks connected with acquisition of business (investment object).

Aims of Due Diligence:

• legal examination
• financial examination
• tax examination
• estimation of investment objects value.

When rendering services we use a technique of thorough business research based on a full-scale study of the company’s activities, its management; analysis of available agreements, contracts and financial reports; drawing up various scenarios of the company’s development; research of a branch and operational fragments of market.

Due Diligence reveals to investors:

• real financial and economic activities of investment object
• applied schemes of tax sheltering
• financial and tax risks in monetary terms
• risk of loss of assets and business altogether
• real value of business
• capability of business to generate money flows.

Appraisers, lawyers, financial and tax consultants work hand in hand – complex information on a deal can be presented only by means of joint efforts of specialists.

The result of Due Diligence is a statement containing estimation of investment attraction and reliability of the target. When revealing financial, legal, tax and other risks clients can cancel the deal in due time or come up with a proposal to adjust the price or other terms of the deal.