Due diligence analyzes (DD) serve to limit the risk associated with investments in other entities.
The growing risk of responsibility of members of the management board resulted in the fact that we use procedures to identify and prevent the risks of board members' liability for errors, omissions and failure to meet the obligations and the duties of the management of entities who are managed and provided for acquisition.
These include identification of property, legal and tax risks as well as other significant areas of public and civil law risks.
We analyze formal and civil law documentation as well as transactions carried out and their economic and legal effects. We carry out tests of correctness of their classification, qualifications, records and settlements of transactions.
We assess internal risks resulting from the structure, supervision and conducting operations as well as external ones resulting from the legal and business environment, environmental protection and spatial development.
We check the legal titles of assets, compliance of their classification, qualifications, depreciation, as well as settlement of production and inventory, we analyze wages, their settlements, provisions, prepayments, and settlements of currency translation differences. We inventory and verify tax and other public-law settlements.
We review settlement balances, their accounting recording, registers and settlements of VAT, PIT, Social Security, CIT and other public-law obligations required for a given entity.
As a result, the DD purchaser obtains information - which processes implemented by the company are not compliant with internal procedures and applicable law, and to what extent identified risks may cause property consequences and threaten business operations. An important area of this message is information on the scope of responsibility of Management Board members.