Due diligence

Every investor wants to maximize the return on investment at minimum risk. The transaction process requires services of specialized experts who will help in making optimum business decisions. Due diligence is the key tool that supports investors in this process.

What is due diligence?

Due diligence is the process of an in-depth analysis and assessment of the planned investment carried out before the conclusion of the transaction, based on a detailed review of historical data. The main goal is to identify key risks that affect the value of the investment as well as to assess the investment itself. It covers various areas, including financial, legal and tax due diligence.

Why MDDP Outsourcing?

Thanks to our long-term experience in accounting, we can not only analyze data but also identify the risks which go under the radar of people who do not keep books on a professional level. We offer a unique solution on the market – a fluent transition from the due diligence stage to keeping accounting records, without the need to transfer the knowledge onto a new accounting team. It minimizes the risk of errors and information loss and accelerates the finance management process after the integration.

When one should outsource due diligence?

The service is recommended before a planned purchase or sales transaction for:

• an entire enterprise
• an organized part of an enterprise
• shares in a company
• assets of an enterprise (e.g. real estate, other fixed assets)

Who is the service for?

Due diligence is dedicated both to the purchaser and the seller. Understanding the different needs of the parties, we adjust the scope of the service to the individual needs of the customer.

The scope of offered services

As part of financial due diligence, we offer:

• a scope of service adjusted to the individual needs of the customer
• an analysis of financial data and support in the valuation of the investment (i.a. EBITDA, net assets)
• an assessment of the equity and financial condition of the investment, including the specific nature of activities
• identification of key risks and hazards associated with the investment
• comprehensive support after the purchase

What makes us different?

Thanks to our commitment from the stage of due diligence to the bookkeeping, we can better understand the specific nature of the company, making us the perfect partner in conversations about earn-out calculations and other financial aspects involved in the acquisition. We offer flexible cooperation options – after the end of the due diligence process, we can:

• aim for taking over the bookkeeping
• standardize the books to the purchaser’s needs
• hand them over to the customer’s in-house accounting team

With our knowledge in many accounting systems, we can provide even more extensive cooperation whenever the seller lacks the professional resources to prepare them. We can also support in or even take over the data migration process from the seller’s systems to the purchaser.

Final report

The service is concluded with a comprehensive report including:

• the scope and basis of works
• the goal of the report
• a description of the investment, industry and competitors
• an analysis of historical financial data or their projections with conclusions
• the identification of key risks and recommendations in response to the identified hazards

Advantages of due diligence

The key advantage is obtaining complete and reliable information on the potential investment and the identification of risks and hazards, which will help in making investment decisions and negotiations. Due diligence ensures confidence in the investment and protects against possible abuse revealed during the process.

We encourage you to start cooperating with MDDP Outsourcing. Our specialists in Katowice and Warsaw will eagerly answer your questions and present you an offer and service price list for financial due diligence.