Due Diligence

One of the largest Russian holding companies possessing a telecommunication business conducted a transaction for purchasing a company, which was the basis of a TV channel operation. The transaction was executed in several stages, one of which presupposed complete audit of the financial and economic activity of the TV channel by an independent consultant (Due diligence). ACG Sozidaniye i Razvitiye was applied as a consultant. Our experts managed to quickly check the purchased business on all the activity and issued a detailed report on the identified circumstances which were essential to the buyer. The results of the audit helped the buyer to motivate reduction of the transaction price and to clarify the estimated amount of required follow-up investments into the business for improving its profitability.

Investors intended to buy a company possessing a plot of land on the bank of a reservoir for the subsequent construction of a yacht club. Before the transaction the experts of ACG Sozidaniye i Razvitiye conducted a complete all-round audit of activities of the purchased company and its assets (the Due diligence procedure). The audit resulted in the following: a high-pressure gas pipeline was laid along the company’s plot of land, the plot was located in a zone of sanitary protection of water resources and potable water supplies and was a zone of free access to the riverside for any unauthorized persons. These essential circumstances allowed investors to motivate abandonment of the transaction and to avoid investments into unrealizable business project.