Due diligence

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The acquisition and disposal of a business or its shares involves both opportunities and risks. The buyer of a potential target company is often not sufficiently informed about its economic situation. However, the buyer must gain a thorough understanding of the target company in order to establish its purchase price, obtain financing from third parties and determine its future positioning and integration. Due diligence helps gain such understanding and forms therefore an important basis for a successful transaction.
  
You profit from our services not only as a potential buyer – sellers can also gain a competitive edge in the transaction process. In this regard, we offer e.g. vendor due diligence as well as the preparation of a fact book or further marketing instruments as part of a professional bidding process.
 
Our seasoned transaction experts provide highly qualified advice on all relevant matters, prepare the key information for all stakeholders and, in doing so, help you save valuable time. In this way and whether you are a buyer or seller – we create the basis for successful negotiations.
 

The special strengths of our approach to transaction consulting

Every transaction is different. Despite our standards, we consider the individual consideration of the specific aspects of a target company and the transaction itself as a critical success factor for your project. This applies equally to both institutional and strategic investors. Together with you, we develop tailored, if necessary tiered, examinations which, through their focus on the most significant aspects, lead to a reduction in time and costs. The start can frequently be initiated by a so-called “red flag due diligence” that focuses on the identification of so-called deal breakers and allows for the selection of further due diligence areas. 
 
We provide due diligence support from a single source. We work in interdisciplinary teams (e.g. financial, tax and legal) both at home and abroad from our wholly-owned offices. Our due diligence projects are always managed by an experienced professional who is also your regular point of contact.
 
In all analyses, the focus is on acquiring transaction-relevant data for the business valuation, for negotiations concerning the acquisition agreement, especially the purchase price, for financial planning and, if necessary, also for a purchase price allocation as well as possible integration. Our aim to always provide you with tailored analyses leads to individual assignments, from the review of partial aspects to all-encompassing projects.
 

Rödl & Partner in Lithuania offers you an assistance in conducting the following types of due diligence:

  • Financial due diligence
  • Tax due diligence
  • Legal due diligence.

 

Financial due diligence 

An effective financial due diligence comprises most often the following points: 

  • Identification of critical success factors for future development, in particular the analysis of sales and performance factors as well as cost components
  • Determination of normalised earnings from operations (EBIT / EBITDA) through the elimination of extraordinary occurrences
  • Derivation of working capital, cash flows, etc.
  • Examination of financing structures and identification of debts and similar items
  • Critical assessment of financial forecast and derivation of relevant financial scenarios

At your request and based on the results of the due diligence, we determine an indicative value for the target company.

 

Tax due diligence

We analyse and assess tax risks associated with the target company that may lead to financial obligations to fiscal authorities and check whether sufficient provisions were made to account for such risks. Our analyses provide information relevant to the calculation of the purchase price and the structuring of the acquisition agreement (guarantees, exemptions etc.).
 
We determine the current tax status of your target company, identify its specific tax risks and provide advice on how to optimally structure your contemplated transaction.

 

 

Contact

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Michael Manke

Attorney at Law

Associate Partner

+370 5 212 35 90

Send inquiry

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Aleksas Jonika

Head of Audit Department

+370 5 212 35 90

Send inquiry

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Nora Vitkūnienė

Head of Tax Department

Associate Partner

+370 5 212 35 90

Send inquiry

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Mantas Mališauskas

Domestic Tax Division Leader

+370 5 212 35 90

Send inquiry

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