Financial, legal and tax risks regarding due diligence, mergers & acquisitions (M & A)
It all relates to the issues linked to the acquisition and sale of enterprises (M & A). When a potential buyer is interested by a target, he usually has very little information on that target. Even during the negotiations, he usually only receives the information provided by the management of the target. The later generally covers number of financial, legal and tax risks that the management of the target will not disclose, which risks it may also not be aware of. Such risks may be of that importance that it leads to an abortion of the sale (« deal breaker ») or are sufficiently high to have an influence on the sale price.
The involvement of external specialists is therefore necessary. First, specialists have the specific know-how of their job and can therefore explore and evaluate risks much more in detail than the management of a company could do and second, they have a full independence in the transaction, which guarantees the exactness and objectivity of the risks discovered. Based on the expert’s report, the buyer can freely and fully informed decide on the opportunity of the transaction and on the fair price of it.
Our extensive experience in due diligence allows us to offer to our client a full tax and legal due diligence, including a verification of the issues relating to social security. We have adequate partners to perform the financial due diligence, making possible the delivery of one single report, presenting all the risks in a global outfit.
Our expertise includes also to the design of the tax and legal acquisition structure, to the completion of the operation, to the negotiation of the tax rulings where necessary and to the follow-up of the post-integration phase.