What is due diligence?

The practice of due diligence is a comprehensive verification of the company’s activities, examination of documentation, reporting, and compliance with legal requirements. In fact, this is a guarantee of your confidence that the business is really worth its money.

Components of due diligence:

  • Financial analysis — verification of the company’s assets, their quality, and reporting disclosing them. 
  • Tax analysis — assessment of transparency of the business taxation system. Analysis of legal aspects — verification of legitimacy of registration procedures, ownership rights to trademarks, compliance of the document flow with the requirements of law. 
  • Analysis of the situation in the market — real assessment of the company’s future, audit of effectiveness of marketing activities, determination of opportunities for growth.

What does the due diligence service include?

Depending on the client’s assignments, the service can either cover all areas of the company’s activities, or focus only on certain areas. As a rule, due diligence includes:


  • Audit of efficiency of the company’s business processes. Such service is ordered not only before a purchase transaction, but also for an independent assessment of one’s own assets. For example, when owners wish to check efficiency of management. 
  • Verification of material assets. Checking the real condition of assets allows you to avoid overestimating or underestimating their value, and will provide a non-biased view on the business opportunities. 
  • Assessment of risks when buying a company. Important information for making decision regarding investments or acquisition of a company. Comprehensive assessment with an emphasis on possible negative consequences. 

Assessment of personnel potential and marketing. Audit of efficiency of employees, as well as verification of effectiveness of the marketing policy related to business.