Prior to investment decisions, the accurate knowledge about the target companies and investments, determination and confirmation of real market value is of key importance.
Our due diligence services are aimed to support our clients in making these decisions by assessing the potential, risks and reality of a concept, company, project or business model.
Why do we believe it is necessary?
In case the investment decision is not properly prepared, without screening or due diligence:
- A number of unexpected problems (financial, legal, technological) can arise causing significant damage, additional expenses or in extreme cases even end of operation, and eventually fail of the expected return indicators;
- If the process had been defined based on improper data, the investor may end up paying way above the real market value
- Independent outside aspect give opportunity for the project owner as well for the correction of unknown deficiencies and less realistic plans.
Solution
- Prompt and efficient due diligence procedure based on significant experience and good practices, focusing on financial risks, return calculation, operational problems.
- Due diligence carried out by market standards, covering:
- Assessment of past and current economic, capital and asset evaluation
- Assessment of strategies, future plans and concepts
- Assessment of reality of sales plans
- Assessment of pricing and cost price calculation
- Validation of the relevance of human and material costs
- Profitability assessment
- Assessment of liquidity
- Assessment of long term financing options
- Listing of dditional options and requirements (tenders, guarantees, etc.)