Due diligence

Due diligence is an economic and legal investigation of a business, assessment of the enterprise’s price and development prospects.

Investment audit is a complex inspection of an investment object organised by a stakeholder as a rule before closing a deal. In the course of the investment audit feasibility of investments, reliability of public reporting indicators is verified, investment risks are assessed, and practical recommendations to reduce them are developed.

When do you need an investment audit?

Before investing in a little-known company it is better to check whether your investments won’t be a waste of money.

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Often, investment audit is carried out not before, but after closing a deal, since the initial conditions during the preliminary inspection cannot remain the same throughout the period of return on investments. In order to keep abreast, you need not only to monitor the changing conditions, but also compliance of actual allocation of funds with investment objectives.

What is investment audit for?

The Due Diligence procedure provides a real picture of an investment project, and includes the system of activities aimed at a comprehensive inspection of its lawfulness and commercial attractiveness.

Where do we record the investment audit results?

The results of an independent data analysis are given to the client in the form of a reliable report on the activities of the investment object with recommendations for avoiding negative effects.

Quality of Investment Audit by Sterngoff Audit

  1. An Audit Programme is always developed individually following the results of a focused discussion with the customer.
  2. Our specialists are experienced in the Due Diligence procedure in various sectors of the economy taking into account their specificity: from food industry to oil refining.
  3. We know where, how much and what kind of data on the investment object are required to carry out investment audit and collect all the information on our own.
  4. We define a fair price of the investment object and identify any potential risks by analysing the past, present and expected future of the acquired business.
  5. Within the Due Diligence service we provide a detailed description of the business by the following parameters: property, personnel, market position, development trends, financial condition, area of activities, services — and make recommendations to address the detected problems.