You may have already heard of the term \"due diligence\", which comes from American capital market law. It is an examination that plays an important role, especially before a company is taken over. In this article, you will find out exactly what due diligence is, what it is used for and how it can be carried out.<\/p>\n\n\n\n
Translated into German, the term means something like \"with due care\" or \"Risk assessment<\/strong>\". It was first used in America in 1933 in the context of investor protection and referred to an audit of securities. This was intended to ensure that investors were protected from fraud. <\/p>\n\n\n\n Today, due diligence still refers to an audit, but in the context of a company. It is an analysis of the existing Risks <\/strong>of a group. This is examined holistically, with economic structures, taxes and many other aspects being closely scrutinized. <\/p>\n\n\n\n The identification of risks is intended to Optimizable weak points<\/strong> to be discovered in order to subsequently develop a suitable strategy. The result of this analysis is a Due Diligence Report<\/strong>. All information is recorded here. The report contains additional recommendations for action and a data-based decision as to whether the company in question should be purchased or not. <\/p>\n\n\n\n Areas of application <\/strong>There are various reasons for a due diligence review: As already mentioned, the analyses are used when it comes to the purchase of a group. They can also be carried out before an IPO or a real estate transaction. In addition, a company can commission an audit of another group before selecting a potential business partner. <\/p>\n\n\n\n The due diligence is carried out by professional Experts <\/strong>the buyer side and external advisors. Depending on the area being examined, these may include tax consultants, experts, lawyers or auditors. In the case of companies that specialize in one area, other experts in the respective field can be consulted. <\/p>\n\n\n\n Detailed discussions are held with the company management and the Group's documents and data, such as sales figures, are analyzed in detail. For example, the following are examined<\/p>\n\n\n\n A distinction is made between different types of due diligence, which focus on different aspects. The Commercial Due Diligence<\/strong> examines the risks and opportunities of the potential new company. Location factors, competitors and existing customers are examined. This model is detailed and focuses on analyzing the business model and the market. <\/p>\n\n\n\n Corporate law relationships, contractual relationships, suppliers, labor law and data protection requirements are covered by a Legal due diligence<\/strong> examined. The experts also take into account possible compliance violations and existing legal disputes.<\/p>\n\n\n\n The Compliance due diligence<\/strong> is often part of legal due diligence, but can be carried out as a separate analysis and focuses on breaches and risks in the area of compliance. This includes aspects relating to corruption, competition, money laundering, antitrust law and data protection law.<\/p>\n\n\n\n As the name suggests, the focus is on the Tax due diligence<\/strong> on the topic of tax law. The current situation and possible future developments are analyzed. The optimal tax structure for transactions, a medium-term tax concept and the design of tax clauses are calculated. <\/p>\n\n\n\n The Financial due diligence<\/strong> looks at the financial situation, earnings and assets of the new company. The data resulting from this analysis is particularly important when it comes to calculating the purchase price. For example, the following are analyzed<\/p>\n\n\n\n Depending on a company's product or service, this may result in a Environmental Due Diligence<\/strong> come. It examines the potential environmental risks that may arise. In the course of this analysis, possible cost, liability and remediation risks are calculated. <\/p>\n\n\n\n The Technical Due Diligence<\/strong> deals with the technical condition of all systems in the company. The technology is checked for quality and remaining useful life. Manufactured products and their quality are also closely monitored.<\/p>\n\n\n\n If a company is to be purchased, the sellers are responsible for ensuring that the necessary Provide information<\/strong>. This includes all the necessary company data so that the buyer can deal intensively with the information. Opportunities and risks in the various areas analyzed are reviewed. <\/p>\n\n\n\n After the provision and Examination <\/strong>of the documents, the Evaluation<\/strong>. Data and documents are critically examined. Experts identify possible risks and advise the buyer with their specialist knowledge.<\/p>\n\n\n\n The result is a kind of Q&A phase<\/strong>in which any remaining questions can be answered. For this purpose, a list of questions is drawn up by the interested buyer. The buyer's advisors work out topics that need to be addressed in more detail. <\/p>\n\n\n\n In the final phase, the data obtained Findings used<\/strong>. The sellers try to use the results to achieve the highest possible sales price. The buyer's counterparty tries to achieve the opposite and keep the purchase price low based on the data obtained. The results obtained are used as a basis for discussion in the negotiations. <\/p>\n\n\n\n Companies carry out due diligence with the aim of Recognize risks<\/strong> and optimize weak points. These checks are used when a company is to be purchased, a business partner is being sought and before a real estate purchase or an IPO. <\/p>\n\n\n\n The following are involved in these audits Experts <\/strong>such as lawyers, experts, tax consultants and auditors. Also Specialized experts<\/strong> are consulted depending on the type of company in order to maintain the quality of the audit and to be able to detect even minor weaknesses. <\/p>\n\n\n\n There are numerous Different types of due diligence<\/strong>These are differentiated from one another, such as commercial, legal or compliance due diligence. Financial due diligence focuses on an analysis of the economic situation, such as assets, existing contracts or sales revenue. <\/p>\n\n\n\n Depending on requirements, individual types of due diligence can be carried out while others are neglected. Commercial due diligence in particular is considered to be extensive. <\/p>\n\n\n\n The following can be roughly categorized Due diligence process<\/strong> in providing the necessary information from the seller side, review and evaluation, Q&A phase and final use of the results in the negotiations. <\/p>","protected":false},"author":20,"featured_media":0,"template":"","class_list":["post-45329","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/45329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=45329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Due diligence audit<\/h2>\n\n\n\n
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What types of due diligence are there?<\/h2>\n\n\n\n
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Due diligence process - How does it work?<\/h2>\n\n\n\n
Conclusion: Due Diligence German - What does it mean?<\/h2>\n\n\n\n