Thanks to the close collaboration between our legal and economic experts, our transaction services – from due diligence to drafting purchase agreements – offer our clients real added value.
Our transaction services include:
Our financial due diligence work is marked by the high quality of the underlying company analysis. This provides a sound basis for a subsequent business valuation, if necessary, and serves as a valuable lever in price negotiations. To satisfy the strict requirements that apply in this field, our financial due diligence teams consist exclusively of experienced experts and partners. We prepare cost-effective red flag reports as standard to enable our clients to identify deal breakers.
In addition, we perform vendor due diligence and prepare fact books for our clients.
In view of the intimate relationship between the law and business management, we pay close attention to analyzing the accounting implications of transactions and internal restructuring programs, and advising clients accordingly. In company takeovers, divestments, leasing arrangements, financing and outsourcing, the legal structure of the transaction is instrumental in determining the accounting consequences. That’s why, even before moving beyond the planning stage, we point out to clients the possible impact on single-entity and consolidated financial statements, and on the relevant key performance indicators, arising from the structuring of complex agreements and transactions. In this context we benefit in particular from the interdisciplinary collaboration between legal and economic experts that sets our firm apart.
Allocating a purchase price to acquired assets and liabilities is made more complex by the need to consider accounting interests, some intricate issues, and standard setters’ requirements, which can be open to interpretation. When overseeing an acquisition and performing the necessary purchase price allocation for external accounting purposes, we draw on our long-standing experience of collaboration in many other transaction projects. By regularly engaging with professional bodies and consulting the Institute of Public Auditors (IDW), the Federal Financial Supervisory Authority (BaFin), the Auditor Oversight Body (APAS), the tax authorities, and case law, we maintain a clear picture of current views on a wide range of topics.
Beyond the scope of purchase price allocation according to IFRS, our expertise also encompasses similar processes for tax, corporate law and commercial accounting purposes. We are also regularly engaged to assist with divestments.
Tax due diligence plays a major part in averting risk and addressing reorganization issues. We undertake the complex assignments that arise in this context with teams assembled from a pool of experienced tax advisors and auditors. We assess the target’s current tax position and evaluate the relevance of our findings to its subsequent structural integration in the acquirer’s organization. When performing vendor due diligence, our experts also keep sight of the interests of the prospective acquirer to achieve the greatest possible benefit for the client.
M&A projects are generally subject to extreme time pressure and involve multiple parties. One of our tasks is to actively manage projects so that they meet time limits and budgetary constraints. We regularly monitor project milestones and review the budget. This enables us to identify possible interfaces to related subprojects and fosters the sharing of information between the advisory teams. As a consequence, all the relevant information is processed promptly and duplication is avoided.