Due Diligence

The restriction measures imposed by governments in many countries caused pervasive discontinuation of production facilities and a drop in demand on major products and services which had driven millions of companies to the verge of coping. As a result, the global economy has incurred a huge loss.

The other side of the pandemic is an extreme rise in merges and acquisition since a strategic investor in many cases could be the only way out to save the business and support its activities.

In its turn, investors during the hard times are becoming more cautious and specific when choosing investment objects and they opt for diversification in order to mitigate risks: In the era of turbulence, sustaining of quality assets prevails over the amount of future earnings. And this means that it is high time to invest in assets resistant to changes in the economy or in assets highly potential to grow. At this, an investor shall know both the strengths and weaknesses of assets to be acquired and mitigate or fully eliminate risks related to entering into transactions.

In the time when the further development of the situation is uncertain, an investor, much more than during the favourable times, is willing to be sure in reliability and profitability of the transaction. The investor will need a real picture of the position of potential contractors so that to identify and mitigate all significant and potential risks: their financial position, legal status of assets to be acquired and possibilities to use them effectively during the crisis. A complex study which allows to answer these questions in called Due Diligence in the world practice.

Experts of FinExpertiza can provide a full range of Due Diligence services and an independent valuation of the investment object as well. Our company has designed own methods for the procedures which ensure a complete transparency of the future transaction.