Financial Due Diligence

Rigorous due diligence before an acquisition is of key importance not only in terms of due managerial care, but also in terms of the need to assess the advantageousness and suitability of a large investment. Our colleagues have extensive domestic and international experience and are ready to provide you with the financial due diligence services you require.

Depending on our client’s requirements, FDD typically includes:

Risk analysis, and an analysis of the potential opportunities and synergies associated with the proposed transaction
Analysis of the value generators and growth factors of the target company
Profit and loss statement analysis with a possible emphasis on normalisation of earnings before interest, tax, depreciation and amortisation (EBITDA)

Identification and analysis of balance sheet items and preparation of a subsequent breakdown of such items in accordance with the client’s requirements, usually into the following categories:

Net Working Capital
Net Cash / Net Debt
Net Operating Assets
Analysis of other balance sheet items not reflected in any of the above categories

Analysis of off-balance-sheet items and their potential impact on the contemplated transaction
Determination of differences between Czech GAAP and IFRS or German HGB
Advisory in determining the main components of the ownership interest to be acquired and the actual purchase price of the ownership interest