Due diligence
Due diligence means a thorough examination of a company’s financial and business operations resulting in an expert opinion on legal risks inherent in and the attraction of the company as an investment for prospective investors (purchasers) or on the efficiency and validity of subsidiaries operations from the parent organizations perspective.
The scope of Due diligence may vary subject to customers’ wishes and requirements. Due Diligence is conducted by a specially formed team comprising lawyers, auditors and appraisers.
Due diligence enables the customer both to assess risks connected with the acquisition of a company or its assets and determine a correct acquisition price as risks identified and specified in the expert opinion have a material effect on the acquisition price and allow to exclude certain assets if risks are considered high. When necessary, the team members also review the possibilities to minimize identified risks of the acquisition and recommend the best acquisition pattern.
During the period exceeding eight years HLB Vneshaudit CJSC has been engaged in Due Diligence investigations under more than 60 Due Diligence projects for Vostokgasprom OJSC, Severstal Group, Vimm-Bill-Dann, Naphta Moscow OJSC, Aeroflot OLSC, Krasnoyarsk Airlines OLSC, 36,6 Pharmacy Network OJSC, YUCOS-RM CJSC and many other companies.
Under the projects we carried out:
financial audit of the companies subject to acquisition
legal audit (validity of owners’ title to offered shares (interests) and property, prosecution risks, etc.)
business valuation
property appraisal
transaction support
Under the implemented projects our customers acquired the following companies: Ulan-Ude International Airport OJSC, Buryat Airlines OJSC, Mosstroiekonombank Joint Stock Commercial Bank CJSC, Trayana LLC, Lukoil-Market-N LLC, Slavex Group of Companies, Tomsk Fuel and Filling Company OJSC, Continental Airlines CJSC, assets of the bankrupt Federal State Unitary Enterprise Arkhangelsk Airlines, Oryol Steel Rolling Works OJSC and Volgograd Steel Rolling Works OJSC, Novorosnefteresurs OJSC, Yaitski Pasad CJSC, FPK Kedr-M OJSC, NBA-Service CJSC, Interneft CJSR (Rostov-on-Don).