Accounting and Financial Due Diligence
Generally speaking, Due Diligence processes in the Accounting and Financial areas aim to calculate the EBITDA (earnings before interest, taxes, depreciation, and amortization) and assess the quality of the results and of its assets, in addition to presenting a clear understanding of the working capital and the company’s indebtedness.
Accounting, Labor and Pension Due Diligence
Generally speaking, Due Diligence processes involving tax, labor, and pension areas aim at presenting a better understanding of potential liabilities arising from tax, labor, and pension legislation misinterpretations and that may entail encumbrances after the company’s purchase process is concluded.
Commercial Due Diligence
Overall, the commercial Due Diligence process addresses the investment analysis from a commercial vantage point; the market into which the company operates, the premises adopted for revenue projections, as well as the main items that generate value and the identification of growth barriers.
Due Diligence Operacional
In general lines, the operational Due Diligence process will present a better understanding of the company’s current operational capacity, bottlenecks, and the risks related to operational barriers and/or the need for suitable investments to sustain the company’s growth projections.
Environmental Due Diligence
Generally speaking, the Environmental Due Diligence process aims at analyzing the business-related environmental risks, presenting the cost estimates, and assessing the compliance with environmental standards, among other important aspects.
Legal Due Diligence
Generically, The Legal Due Diligence process involves collecting data related to judicial and administrative proceedings, corporate equity status, clearance certificates from diverse areas and agencies, ongoing contracts with future liabilities, among others.
Human Resources Due Diligence
Generally, the HR Due Diligence process aims at learning about the scenarios related to the company’s career plans and salary grades and its Human Resources environment, as well as understanding how the payroll costs will behave after the acquisition process.