{"id":1533,"date":"2021-03-05T15:58:59","date_gmt":"2021-03-05T14:58:59","guid":{"rendered":"http:\/\/mgi-bpo.hu\/szolgaltatasok\/tax-and-financial-due-diligence\/"},"modified":"2021-04-29T12:58:30","modified_gmt":"2021-04-29T10:58:30","slug":"tax-and-financial-due-diligence","status":"publish","type":"szolgaltatasok","link":"https:\/\/mgi-bpo.hu\/en\/services\/tax-and-financial-due-diligence\/","title":{"rendered":"Tax and financial due diligence"},"content":{"rendered":"

The purpose of financial due diligence is to mitigate investor risk and explore additional opportunities inherent in a business<\/span><\/b>.<\/span><\/b>\u00a0<\/span><\/h2>\n

Financial due diligence has become one of our everyday services in the world of mergers and acquisitions (M&A). An investor entrusts an auditor to assess the risks and carry out a financial review of the target company.<\/span>\u00a0<\/span><\/p>\n

D<\/span>ue diligence reveals key risks as well as deal breakers.\u00a0<\/span>\u00a0<\/span><\/p>\n

The conduct of due diligence<\/span>\u00a0(<\/span>sample<\/span>):<\/span> \"\"<\/span><\/p>\n

    \n
  1. Planning<\/span><\/li>\n<\/ol>\n
      \n
    1. Site visit<\/span>\u00a0<\/span><\/li>\n<\/ol>\n
        \n
      1. Status report<\/span>\u00a0<\/span><\/li>\n<\/ol>\n
          \n
        1. Discussing identified risks<\/span>\u00a0(meeting)<\/span>\u00a0<\/span><\/li>\n<\/ol>\n
            \n
          1. Drafting a due diligence report<\/span>\u00a0<\/span><\/li>\n<\/ol>\n
              \n
            1. Finalizing the due diligence report<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

              \u202f<\/span>\u00a0<\/span><\/p>\n

              The result of due diligence is a report<\/span><\/b>\u00a0<\/span><\/h2>\n

              We primarily prepare a so-called \u2018red flag\u2019 report on the results of our service. In this report, we draw attention to the risks that need to be addressed during the investment and that may exceed normal business risk. Also, it is a guide for the target company on what areas need to be developed. Oftentimes, this is also one of the investment expectations of the target company to resolve the issues therein. Either before or during the investment.<\/span>\u00a0<\/span><\/p>\n

              Venture capital and private equity investment<\/span><\/b>\u00a0<\/span><\/h2>\n

              We most often receive our assignments from venture capital investors, who involve co-investors<\/span> and private equity investors to mitigate the risks. Investors typically ask the target company for a proposal on who should conduct the service. At best, the target company will propose an auditor with whom the investor has already worked, so there is mutual trust in the auditor.<\/span>\u00a0<\/span><\/p>\n

              Startup\u00a0<\/span><\/b>and experimental development<\/span><\/b>\u00a0<\/span><\/h2>\n

              One of the biggest values of startups is not always reflected properly in the accounts. The accounting and taxation issues of experimental development often cause great concern for even the most experienced tax advisors and auditors, as a significant number of startups either create a business model that is new to the market or the product \/ service development contains something new. Many times our experience and references in this area are an advantage for both the investor and the target company.<\/span>\u00a0<\/span><\/p>\n

              Due diligence<\/span><\/b>\u00a0+ MGI Worldwide M&A\u00a0<\/span><\/b>Marketplace<\/span><\/b>\u00a0<\/span><\/h2>\n

              \"\"We are not limited by national borders<\/span>. I<\/span>f you want to appear as either a seller or a buyer in a global<\/span>\u00a0M&A\u00a0<\/span>Marketplace, we can assist you<\/span>.\u00a0<\/span>Check out the options<\/span>:\u00a0<\/span>https:\/\/forumma.mgiworld.com\/<\/span><\/a><\/p>\n

              \u202f<\/span>\u00a0<\/span><\/p>\n

              \u00a0<\/span><\/p>\n","protected":false},"featured_media":0,"template":"","szolgaltatas_kategoria":[28],"class_list":["post-1533","szolgaltatasok","type-szolgaltatasok","status-publish","hentry","szolgaltatas_kategoria-assurance"],"yoast_head":"\nDue diligence focused on fincnacial and tax risk in Hungary - MGI-BPO<\/title>\n<meta name=\"description\" content=\"Due diligence: authenticity of annual reports, compliance with accounting regulations, tax risks, financial risks of the customer & supplier contracts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mgi-bpo.hu\/en\/services\/tax-and-financial-due-diligence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Due diligence focused on fincnacial and tax risk in Hungary - MGI-BPO\" \/>\n<meta property=\"og:description\" content=\"Due diligence: authenticity of annual reports, compliance with accounting regulations, tax risks, financial risks of the customer & supplier contracts.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/mgi-bpo.hu\/en\/services\/tax-and-financial-due-diligence\/\" \/>\n<meta property=\"og:site_name\" content=\"MGI-BPO\" \/>\n<meta property=\"article:modified_time\" content=\"2021-04-29T10:58:30+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/mgi-bpo.hu\/en\/services\/tax-and-financial-due-diligence\/\",\"url\":\"https:\/\/mgi-bpo.hu\/en\/services\/tax-and-financial-due-diligence\/\",\"name\":\"Due diligence focused on fincnacial and tax risk in Hungary - 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