Working in a market with an increasingly competitive globalized economy, where the pursuit of positive results is crucial, one of the growth options for companies and investment funds is to acquire new companies or lines of business. The valuation of the assets and liabilities that will be acquired, as well as the price and the bottom line of the company to be bought or sold are necessary information to be successful in any negotiation.
IRKO Hirashima offers its customers Due Diligence models that fit all company sizes and business activities.
Due diligence is a set of accounting, financial, tax, labor and social security analyses based on historical data, designed to provide investors with the information necessary for decision making.
Buying and selling companies is not a simple task! You should always seek help from specialized professionals.
After the transaction
After the transactions, the company’s purchase or sale price should generally be revaluated, considering the business performance after the reference date on which the Due Diligence was performed.
We also assist companies — both buyers and sellers — in calculating price adjustments.
- Historical analysis of the company or business to be acquired;
- Analysis of the suitability of accounting practices in place at the company or in the business to be acquired;
- Identification and analysis of possible accounting and financial impacts that may affect the transaction.
- Analysis of the track record of tax problems at the company or business to be acquired;
- Analysis of the suitability of tax practices in place at the company or in the business involved in the transaction;
- Calculation of any tax contingencies yet to be materialized.
Labor and Social Security
- Analysis of the history of labor- and social security-related problems at the company or business to be acquired;
- Analysis of the suitability of labor and social security practices in place at the company or in the business involved in the transaction;
- Calculation of any labor and social security contingencies yet to be materialized.
Preparation and/or monitoring of the data room
- Preparation of a preliminary list of documents for the data room;
- Prior analysis of the documents to be made available in the data room;
- Monitoring requests for information and documents made by the intended buyer;
- Maintenance of documents to be made available in the data room during the due diligence performed by the intended buyer.
- Analysis of the financial indices contained in price adjustment clauses;
- Restoration of working capital, cash flow, net debt;
- Identification of any divergences between the index calculated and the index determined by the company