DUE DILIGENCE - is the procedure of forming a complete picture of the real financial situation of a company, and uncovering all of the risks and liabilities which may not be immediately obvious to even a cautious investor. It is in the interest of both sides (buyer/investor and seller/company) to ensure that this procedure is conducted in an objective and professional manner.

An independent evaluation of a company is a necessary procedure for any change of ownership, as it means both parties can trust the findings and allows them to avoid any conflict of interest by relying on the conclusions and recommendations of impartial experts.

During the process of conducting Due Diligence our work can be divided into three main areas:

• estimation of the accounting system, authenticity of statements and financial analysis;
• estimation of tax risk;
• legal estimation of liabilities' risks
  

During a transaction auditors and lawyers work in close cooperation as the qualification of a transaction can be give jointly.

Thus, as a result of conducting Due Diligence the potential investor will be able to have a comprehensive breakdown of all the relevant information of the company in which he is considering investing. The objectivity and authenticity of the report will allow the investor to make an informed and financially astute decision.