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Financial and tax due diligence of companies in Poland

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Financial and tax due diligence is a service comprising a comprehensive examination of the financial condition and tax situation of the enterprise being the object of the purchase / sale transaction.

 

Financial due diligence of companies in Poland

Financial due diligence is primarily used to determine the value of the enterprise by estimating the recurring EBITDA value generated by the company, determining the proper valuation of its debt as well as estimating the average demand for working capital. Financial due diligence also aims to identify any risks associated with the business. Its purpose is to evaluate the operating results of the company in terms of their drivers. Financial due diligence focuses on the analysis of factors influencing the level of generated sales, margins and operating costs incurred by the company. It is often tailor-made depending on the Client’s expectations, needs and the type of business conducted by the company. It is important to remember that part of the financial due diligence work also includes the analysis of business KPIs that are characteristic to a specific business. Thanks to financial due diligence, the following is possible: post-investment forecast of the company, identification of potential synergies and a more accurate valuation of the company.

Financial due diligence secures the buyer against transferring possible negative risks and liabilities to him.

Tax due diligence of companies in Poland

Tax due diligence verifies the correctness of tax settlements in the light of applicable regulations in the field of: corporate income tax, VAT, personal income tax, social security contributions as well as other taxes such as real estate tax and PCC (civil law activities tax). The study enables the identification of the main areas of tax risk related to the tax liabilities of the acquired company, with particular emphasis on their impact on the current financial situation of the company and the future tax situation of its investors.

Tax due diligence estimates the amounts of potential risks in relation to tax arrears.

Well-performed due diligence is at the heart of the success of any successful transaction. Its added value is inestimable both in the short term at the transaction stage and in the long term post-transaction.