Due diligence is conducted before a transaction is finalised. The scope of verification scales with the size and complexity of the deal.
Types of Due Diligence
Legal Due Diligence
Analysis of the legal aspects of the target: founding agreements, charters, contracts, lease agreements. Review of disputes, licences, environmental obligations, and subsidiary structures. Assessment of legal and regulatory compliance risks.
Financial Due Diligence
Evaluation of the target's financial health: financial statements, accounting practices, cash flow, credit history, past transactions. Assessment of profitability and long-term financial stability.
Commercial Due Diligence
Analysis of market position: market trends, customer preferences, competitive landscape, business model, and growth opportunities.
Tax Due Diligence
Identification of tax risks: review of tax records, compliance assessment, tax liabilities and benefits. Structuring the transaction to minimise tax exposure for both parties.
When Due Diligence Is Needed
- Purchasing property or a business in Georgia.
- Entering a partnership or joint venture.
- Making or attracting investments.
- Vetting a new counterparty or supplier.
- Mergers and acquisitions.