Due Diligence
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Accounting, Financial and Tax Due Diligence
 
   

Lexcorp undertakes due diligence exercise of business, legal and financial affairs of corporate bodies and helps clients to assess business proposals, identify possible legal problems, and thus help clients in taking informed corporate decisions.

Regardless of the situation, while entering into business contract with other company & individuals can expose an organization / company to a myriad of complex situation. Today, virtually all businesses are in some way affected by global enterprises. Lexcorp understands that skilful navigation through unfamiliar situation, prospective partner, laws and regulations, treaties, customs and tariffs, bureaucracy, language barriers and unknown business practices is critical to an organization’s success in the global marketplace. Whether a business crosses one or many borders, Lexcorp provides strategic advice that helps its clients seize and maximize the available opportunities while also managing and minimizing the risks.
 
   
To minimize such risks means to manage them efficiently. As a matter of our longstanding experience, we know that risk can be narrowed down to the minimum. And it really does not matter what is your company's business, how many partners you deal with, whether you work at home or foreign markets.

The due diligence process designed by our specialists is the following:

Due diligence assesses the risks and opportunities of a proposed transaction. It helps to reduce the risk of post-transaction unpleasant surprises. It’s vital that the results of any due diligence process are relevant to the transaction including:

 
  • Valuation of the target and therefore the purchase price
  • Sale and purchase agreement (e.g. accounting definitions, accounting and tax warranties and indemnities, etc)
  • Integration plan (e.g. deal synergies)
 

There are a range of circumstances in which companies can benefit from externally provided due diligence.

 
  • Where any organisation is considering an acquisition, merger or joint venture
  • Where the organisation or deal manager has limited experience in undertaking due diligence
  • Where existing advisers face a conflict of interest, or are not well placed to undertake the necessary due diligence
  • Where the required due diligence demands technical capabilities and commercial experience beyond the organisation’s internal resources
 

Lexcorp can provide due diligence covering financial considerations (e.g. the integrity of historic and forecast information), tax, commercial factors (e.g. customers, suppliers, markets, competitors), superannuation, IT, legal, and human resources.

 
  • Appraising available information about the target entity to more objectively evaluate the merits of the deal and the valuation supporting the offer price
  • Identifying issues likely to affect negotiations
  • Helping to reduce the risks associated with the deal by identifying and quantifying risks and benefits (e.g. identifying suitable warranties and indemnities for inclusion in the sale and purchase agreement)
 

Concluding a deal, the partners hope for the best. But anything can happen in business. Probably you are quite well aware of that. That is why the contract text should be worked out as correctly as possible even if you are sure the deal will work 100 per cent. Examine every single item, just to be on the safe side.