CARAVATI PAGANI’s due diligence activities cover many areas. This is carried out mainly in the tax and accounting area, but also in the contractual and corporate area. The activity consists of an analysis of economic, equity and financial data in order to make the client aware of the potential risks associated with the decision to make a significant investment.
Through the Partners of the Firm, we operate in the areas of labour law, reputation and credit portfolio. Each of these areas requires a careful and competent identification of the areas of tax risk and of any aspect relevant to the transaction to be undertaken. The correct interpretation and application of the regulations in force is naturally one of the aspects we deal with for our Clients.There are many areas in which CARAVATI PAGANI conducts its due diligence activities. This activity occurs mainly in the field of taxation and accounting, but also in the contractual and corporate field. The activity consists of an analysis of economic, equity and financial data in order to make the client aware of the potential risks associated with the decision to make a significant investment.
Through the Partners of the Firm, we operate in the areas of labour law, reputation and credit portfolio. Each of these areas requires a careful and competent identification of the areas of tax risk and of any aspect relevant to the transaction to be undertaken. The correct interpretation and application of the applicable regulations is naturally one of the aspects we deal with for our Clients.
The expression due diligence is commonly used to refer to all investigations and inquiries into information relating to the subject matter of a negotiation. It derives from the Latin debita diligentia, which means “investigation carried out with the diligence due to the specific case”. We perform this activity with the purpose to collect and verify information of patrimonial, fiscal, managerial and economic nature about a company. Through this investigation, we evaluate for our clients the convenience and risks of a business deal. This analysis is crucial for every investor before acquiring an asset in order to establish elements of feasibility or criticality in relation to extraordinary operations. In addition to the asset analysis, tax due diligence is also essential in order to find out about any elements of risk and criticality not highlighted by the seller.
Negotiations requiring the assistance of a due diligence consultant may concern:
These and other activities recur in the life of a business on the occasion of:
Investigations may take place during different stages of the negotiation, before, during or after the deal is concluded:
Tax due diligence, i.e. assessing and controlling the tax status of the company, becomes a key analysis to determine possible liability risks in case of extraordinary transactions. Examples are mergers, disposals or acquisitions. The objective of the activity is to assess the feasibility of certain operations, collecting information of a financial and economic nature of the Company under examination. The strengths and weaknesses of the transaction are then assessed in order to minimise the chances of either party being harmed.
In summary, the control on the “fiscal status” of the Company checks:
It can be divided into two phases:
Our Firm’s team of due diligence experts is able to investigate and investigate in depth information related to the subject of an international negotiation. Our staff’s competence in tax, accounting, contractual and corporate matters allows them to assist foreign clients in transactions in Italy. Availing of the advice of an expert in this field allows the foreign investor to be aware of the potential risks associated with such a transaction in Italy. Together with the foreign client, we establish the feasibility or critical elements of each negotiation.