Due Diligence

There is a variety of reasons for a Due Diligence. The acquisition or sale of a company, an Initial Public Offering (IPO), the preparation of a successor regulation or the merger of enterprises.

The purpose of a Due Diligence is to minimise risks, which are, for example, connected with the acquisition of an organisation. Furthermore the basis for a purchase price has to be determined. Usually the buyer conducts a Due Diligence, but more and more sellers realise their importance by the following reasons:

• Avoid disappointment on the sellers’ side
• Acceleration of the selling process
• Preparation of information for the records and sales contract
• Selective control of sensitive information

Due Diligence can be divided into a variety of sections: Legal, Intellectual Property & IT, Financial, Tax, Commercial (business model & market/competitors), Human Resources and also Production & Environment.

TCF conducts Financial Due Diligence. Hereby our focus is on:

• Historic data (balance sheets and P&L’s)
• Business planning (planning assumptions and methods, plausibility) and
• Information- and control systems

In addition to verifying the figures and facts you still have to put an eye on the needs of a company in the aftermath of a successful transaction. “After the game is before the game” (”Nach dem Spiel ist vor dem Spiel”) - don’t forget to plan the integration process after the organisation has been sold. A precise plan should exist for communications, integrating company cultures or the use of potential synergies. TCF assists in finding the right partner.