Due Diligence: Comprehensive Verification in Investment, Acquisition, Mergers, and Purchases in the USA, UK, and Turkey

What is Due Diligence?

Due Diligence is a procedure for thoroughly analyzing a business or investment project before completing a deal. The goal is to identify risks, hidden liabilities, verify legal compliance, and assess commercial viability.

Why is the Due Diligence Process Necessary?

• Assessment of the real value of a business.
• Minimization of financial loss risks.
• Identification of potential legal and financial issues.
• Verification of the accuracy of information provided by the seller or partner.

Stages of Due Diligence

1. Preliminary Preparation

Defining the goals and scope of the review, forming a team of experts, and developing a work plan.

2. Financial Due Diligence

• Review of financial statements.
• Analysis of cash flows, profits, and losses.
• Identification of hidden debts and liabilities.
• Evaluation of tax risks.

3. Legal Due Diligence

• Analysis of corporate structure and company documents.
• Review of contracts and agreements.
• Assessment of litigation risks.
• Verification of compliance with legal requirements.

4. Commercial Due Diligence

• Market position and business competitiveness analysis.
• Verification of business model and growth potential.
• Evaluation of reputation risks and brand strength.

Specifics of Due Diligence in the USA, UK, and Turkey

Due Diligence in the USA

In the USA, the procedure is characterized by high transparency and strict regulation:

• Mandatory review of compliance with federal and state laws.
• Focus on financial reporting standards (GAAP).
• Thorough checks on compliance and antitrust laws.

Due Diligence in the UK (Great Britain)

In the UK, the review focuses on compliance with European standards:

• In-depth analysis of documents in line with the Companies Act.
• Special attention to labor and contractual obligations.
• High level of scrutiny of tax obligations and reporting.

Due Diligence in Turkey

In Turkey, the emphasis is on legal and commercial checks considering local market specifics:

• Verification of registration and compliance with local regulations.
• Risk analysis related to government regulation and licensing.
• Specificities of interaction with state authorities.

Information Verified During Due Diligence

Due Diligence Case Studies

Example 1: Acquisition of a Tech Startup in the USA

The company Acarkan & Semenov conducted a due diligence check on a startup and identified significant risks related to intellectual property, which allowed them to reduce the deal price by 15%.

Example 2: Mergers of Companies in the UK

Due diligence revealed hidden tax liabilities, which helped the buyer avoid future losses of over £2 million.

Example 3: Investment in Manufacturing in Turkey

Legal document and license analysis identified the need for additional permits, allowing the investor to adjust the market entry strategy in advance.

Why is Due Diligence Important?

Without thorough checking, a deal can lead to serious issues:
❌ Hidden debts and financial obligations.
❌ Legal disputes and lawsuits.
❌ Risks of violating laws and large fines.
❌ Financial losses due to inaccurate data.

Due Diligence – Your Protection Against Risks!

✅ Protect your investment and avoid unexpected losses.
✅ Ensure transparency and legality of the deal.
✅ Minimize tax and legal risks.
✅ Make informed decisions based on facts.

How We Can Help?

🔍 Comprehensive legal, financial, and commercial verification.
⚖️ Identification of potential risks and ways to minimize them.
📑 Preparation of a detailed report with clear recommendations.
🤝 Full support throughout the transaction process.

Don’t risk your capital! Contact us today and get reliable protection of your interests.