Due Diligence is an essential part of the process of acquiring a company. Its main purpose is to verify the company’s value and to identify the risks associated with the company.
Thanks to the procedures applied and our experience, it is possible to evaluate the data presented by the seller. Before making a purchase decision, the buyer has the opportunity to learn about the risks associated with the transaction.
The company which is being sold is audited in terms of finances, accounting, taxes and legal situation. The current human resources situation of the company is also audited, including: employment structure and retention of employees, labour costs or the human resources management model.
We also offer support for the process of company analysis from the seller’s side. The purpose of such a service is to identify opportunities and risks, enabling decision making in negotiations.
Our services include management accounting and management controlling with special emphasis on enterprise monitoring and identifying causes of deviations.
Our services may cover:
- developing of internal control system,
- cost and break-even analyses,
- evaluation of return on sales of products or projects,
- verification of company liquidity and credibility,
- finanancial results evaluation,
- cost optimisation analyses.
We offer professional business valuation service.
When evaluating a business, we utilise the following methods:
- income – we analyse the potential growth of the company based on its ability to generate future income (including by the discounted cash flow method),
- comparative – we refer to the value of comparable companies using the market multiplier and comparative transactions methods,
- assets – we assess the value of the company’s assets and liabilities using the adjusted net assets method or the liquidation method.
The choice of a particular method is based on the characteristics of the business conducted and on the purpose for which the valuation is being carried out.We present the results of a valuation in the form of a report, together with the methodology applied and the assumptions on which the valuation is based.
HOLVIS© BANKRUPTCY RISK ASSESSMENT
The Holvis model for assessing bankruptcy risk
This is an original model by Prof. Hołda, created in cooperation with Ecovis (hence the name Holvis) which makes it possible to properly assess the risk of business entities operating in Poland going bankrupt. This solution enhances the quality of financial review services and increases the security of our customers.
A bankruptcy risk assessment of business entities is a vital element of knowledge for:
The HOLVIS© bankruptcy forecast model was developed on the basis of financial data on Polish businesses, and has been verified and perfected in step with changing economic conditions. In this way, HOLVIS is a more effective risk assessment tool than the popular Z-score model developed and pre-tested in the West.
If you have any questions concerning these services, contact us.