Due diligence investigations during merger and acquisition (M&A) processes are of great importance. During such investigations, we map out the potential tax and legal risks of a business. Meijburg & Co’s M&A experts are here to analyse this for you, so that you have a sound negotiating position.
Elements of due diligence
Whether you are a buyer or a seller, we are here to assist you with your tax and legal due diligence processes. To do so, we quickly and efficiently map out for you the potential risks to a company’s tax and legal position. We also make recommendations, so that you can protect yourself against these risks. In addition, we share our thoughts with you on how you can avoid or limit these risks in the future. Another important part of due diligence are the elements that add value - for example, in terms of present or future tax optimisation measures which could be important in determining the company’s purchase price.
You can choose between different scopes of due diligence process coverage. In consultation with you, we determine the breadth of scope to be implemented. The following factors are considered:
- The number of entities
- The countries
- The tax revenue
- The level of depth of both the investigation and the reporting
For example, you can choose ‘red flag’ reporting. In this type of reporting, we analyse the key tax and legal aspects only in broad terms. Or would you prefer ‘full’ due diligence reporting? In that case, we investigate all of the factors and risks in more detail. A hybrid form of reporting is also possible. Moreover, you can choose for the implementation of a phased approach. Here, we analyse each successive phase of a project in increasing detail. We would be glad to advise you on the approach best suited to your specific case.
Results of the investigation
What exactly can you expect from the results of the tax and legal due diligence investigation? The results constitute a solid basis for the following steps in the merger or acquisition process:
- The planning of your sale or acquisition structure
- The pricing
- Your negotiating points for the purchase and sale agreement
Need help with due diligence?
Are you taking over a company or undergoing a merger? Then it makes good sense to carry out a tax and legal (vendor) due diligence investigation. In this way, you become aware not only of the tax and legal risks, but also of the items that add value, providing you with a strong negotiating position. Meijburg & Co’s professionals possess considerable tax knowledge and vast experience. You are therefore assured of expert advice. We look forward to working for you.