Due Diligence

In the framework of a due diligence as a detailed and systematic risk assessment of financial, tax, legal aspects for a potential acquisition of a company, our experts identify the opportunities and risks of the investment planned and assess the strengths and weaknesses of the target to be acquired. The relevant information to be examined is closely planned together with you and corresponds to the scope and type of transaction planned.

Buy-side and Sell-side Financial Due Diligences

A "buy-side financial due diligence" serves the purpose of identifying and assessing opportunities and risks in accounting, financing, the internal control system and past business transactions of the potential target. Nexia’s consulting offerings encompass analysing industry risks as well as those contained in the assets and liabilities, financial position, financial performance and budget calculations. The aim is for you to have a good basis for making an investment decision based on the results of our analysis and on our well-founded statements on the assets and liabilities, financial position and financial performance of the target company, on the opportunities and risks of the transaction and on the feasibility of the target’s corporate planning.

The "sell-side financial due diligence" refers to one commissioned by the seller, whose results are to serve as a basis of information about the value of your company to be sold for prospective buyers. The benefits of this form of due diligence are to have more control over the selling process for you as the seller, to shorten the amount of time from a decision to sell to a concluded sales agreement as well as to identify any possible problem areas early on and any factors impairing the value of your company to be sold, which could lead to difficulties in the course of a sale. In addition, a transparent presentation of the opportunities and risks of a possible investment widens the circle of interested buyers.

IT Due Diligence

What is meant by an IT due diligence is to have a comprehensive assessment of the IT environment of a company. The subject of examination is compliance with regulatory requirements and in particular the suitability of the IT system to sustainably support the business model. This includes assessing IT governance, IT infrastructure, data protection measures, the software and hardware architecture, the reporting system for security incidents and cloud computing. An IT due diligence may also examine compliance with internal guidelines, regulations and procedures in order to ensure that a company’s IT system is reliable and secure. It is therefore an important component of a company valuation and offers investors and other interested parties valuable information on the current status of IT processes and IT infrastructure.

Cyber Due Diligence

A cyber security due diligence is a process for examining a company’s cybersecurity by identifying information security risks and weaknesses and by assessing them. This includes checking to see if the security concepts are appropriate, examining how the IT systems are protected and how data is secured as well as particularly inspecting measures for a timely restoration of an operational IT environment. It is necessary to go through the history of already identified security incidents and how they were rectified. The objective is to mitigate the risk and the effects of a successful cyber-attack. It is thus an important component of any company valuation and offers investors and other interested parties valuable information on the current security situation concerning cyber risks.

Tax Due Diligence

By identifying tax benefits and risks within the framework of a tax due diligence, our experts develop transaction concepts and structures for ensuring that the potential tax burden is minimised by taking your past business dealings into account. In addition to presenting the company’s tax situation, our advisory services comprise a tax-optimised structuring of a transaction tailored to your individual needs as well as analysing possible financing options and the purchase agreement from a tax perspective.

Legal Due Diligence

A legal due diligence provides information on the internal and external legal relationships of a company. Potential risks stemming from corporate law issues are analysed in detail as well as from existing contracts, agreements and documents. Along with detecting possible risks, the design of a purchase agreement for acquiring a company for a transaction is a decisive factor. Already at an early stage of a transaction process, we advise you on all financial and tax issues arising from such a purchase agreement for acquiring a company, and we take great care in adequately considering all issues identified as being of great importance to your business. In addition, we can support you during negotiations for such agreements at any time. Our objective is to maximise the value of the transaction for you.