The negotiation period for the acquisition of a new company or activity is often based on a number of starting points. These starting points usually relate to profit-generating components or commercial opportunities. These starting points are often captured in a letter of intent that serves as the basis for a purchase agreement.
But what about the risks?
We advise the buyer to perform a due diligence before the purchase agreement is definitively signed. A due diligence means researchers pay attention to tax, legal, financial and commercial starting points. This also includes the timeliness of tax returns and financial reports, but also looking at current leases, employment contracts and so on.
A due diligence is planned and carried out in order to test the main starting points in a formal manner together with the potential buyer (or its employees). It would be very annoying if after taking over the shares it becomes apparent that an important contract cannot be taken over and that the continuity of the newly acquired company is immediately threatened.
Depending on the scope and depth of the due diligence, we work together with various experts, such as lawyers and professionals.
As an entrepreneur, together with us you are the driving force behind the due diligence, meaning the risks of an unexpected setback are reduced.
If you would like to know more about due diligence and how it can work in your situation then please contact us for a no-obligation consultation.