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FINANCIAL, TAX
AND LEGAL DUE DILIGENCE

Due diligence is a critically important stage prior to entering into transactions, making investments, or acquiring a business. A comprehensive analysis of financial, tax, and legal aspects helps identify risks, verify the reliability of data, and support well-informed management decisions.

Kreston Ukraine provides a full range of due diligence services, ensuring a systematic approach to business assessment and the protection of clients’ interests.

FINANCIAL DUE DILIGENCE

Financial Due Diligence is a comprehensive analysis of an entity’s financial position and performance, which is carried out before:

Investing: It allows to evaluate the risks and potential profitability of investments.
Acquisition: It provides information for making an informed purchase decision; it helps measure the fair value of an asset.
Mergers and acquisitions: It evaluates merging companies’ financial stability and prospects.

Kreston Ukraine offers a wide range of financial due diligence services, including:

Comprehensive analysis of income and expenses;
Verification of the main aspects of current and non-current assets;
Analysis of the structure and dynamics of debts, identification of off-balance sheet liabilities;
Analysis of the structure and dynamics of contingent liabilities.

TAX DUE DILIGENCE

Tax Due Diligence is a comprehensive analysis of the tax aspects of a company’s activity, an asset, or a project that is carried out before agreement.

List of key aspects of tax due diligence:

Checking the correctness of filling in the tax reporting and the timeliness of its submission;
Analysis of tax liabilities;
Verification of compliance with tax legislation;
Calculation of risks of tax penalties;
Confirmation of the amount of tax losses and VAT credit;
Resolution of existing disputes with the tax service.

LEGAL DUE DILIGENCE

Legal Due Diligence is a comprehensive analysis of the legal aspects of a company’s activity, an asset, or a project carried out before agreement.

Our company offers legal due diligence services, including:

analysis of corporate structure and documents: we identify the presence of risks in statutory documents and offer options of their mitigation;
analysis of entitling documents for assets - we check the presence of risks of their loss or contestation of rights;
study of court cases: existing and potential litigations - we assess their impact on the value of an asset;
analysis of the core activities of an entity to be audited: we check compliance with the current laws of contracts and the business model as a whole, we identify risks and give recommendations;
verification of compliance with labor legislation: we analyze labor contracts, personnel documentation, identify breaches of labor legislation;
final recommendations for structuring the agreement depending on the identified risks and the client's wishes.

A detailed presentation of due diligence services is available at the link

Kreston Ukraine is part of the international Kreston Global network, which brings together experts in over 110 countries and provides access to the best international practices in due diligence and transaction support.

Minimize risks before a deal – turn to Kreston Ukraine for comprehensive due diligence and confident business decisions.

What is due diligence?

It is a comprehensive review of a business before entering into a transaction (investment, purchase, merger, or partnership), covering financial, tax, legal, and operational aspects of the company’s activities. The purpose is to identify risks, uncover hidden liabilities, and verify the accuracy of information to make informed decisions and determine the terms of the deal.

When is due diligence needed?

It is conducted before making key business decisions, particularly during investment, purchase, or sale of a business, mergers or acquisitions (M&A), as well as when securing financing, onboarding a new partner, restructuring, or preparing a company for sale, in order to timely identify risks and form a well-founded position regarding the terms of the transaction.

What does financial due diligence include?

It involves analyzing the company’s financial condition, including reviewing financial statements, income and expense structure, profitability metrics, cash flows, working capital, debt levels, assets, and off-balance-sheet obligations. It also includes identifying financial risks and adjusting figures to form an objective assessment of the business.

What does tax due diligence include?

It involves reviewing tax accounting and reporting, verifying the correctness of tax calculations and payments, analyzing the structure of tax obligations and settlements with the budget, and assessing compliance with legislation, high-risk transactions, and potential additional assessments, fines, and their impact on the deal terms.

What does legal due diligence include?

It includes analyzing the corporate structure and founding documents, verifying ownership rights to assets (including real estate and intellectual property), evaluating key contracts and obligations, as well as reviewing legal disputes, claims, and the company’s compliance with applicable laws to identify legal risks and their impact on the transaction.

What risks does due diligence help identify?

Financial losses, tax reassessments, legal disputes, and hidden liabilities.

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