Due Diligence in Russia
Before any investment, anyone needs to verify facts to ensure that they are making a wise decision, and this is precisely when conducting a legal, financial and tax due diligence is necessary.
We usually put together a due diligence team consisting of specialists with different skills and knowledge. This team then not only reviews and verifies the information and documentation provided for audit but also determines which critical information had not been submitted.
We usually audit the following as part of any due diligence work:
- General corporate documentation;
- Documents related to material acquisitions or disposals of shares or assets;
- Commercial contracts and lists of customers, suppliers;
- CRM databases;
- Real property documents;
- Intellectual property ownership documents, potential infringements;
- Information security and protection data matters
Quite often companies tend to underestimate the importance of HR and employment documents and they sometimes end up facing unpleasant surprises such as, for instance, when the bonus granted to an executive director as a result of a certain deal turns out to be so high that the whole deal is no longer attractive. It is therefore extremely important to review all employment issues and agreements past and future, as well as assess the risks of set-up schemes. We carefully check general employment and HR documentation, claims, health and safety compliance, outstaffed people, immigration issues and contractor agreements, as well as sick leave, parental leave, and other applicable leave obligations.
The due diligence team also thoroughly reviews:
- Financial contracts and charges, all key financials of the company;
- Insurance agreements in place;
- Trading documents;
- Compliance with currency control and other issues;
- Registration with customs and other authorities
Taxes of all types are, of course, the next major field of review. Accountor transaction and tax due diligence specialists conduct assessments and help clients to determine their post-transaction tax position and exposures to federal, state and local taxes in Russia. Parties to both share and asset deals should clearly and fully understand all tax implications of the proposed terms and conditions as this helps securing grounds to find an appropriate tax structure and create value for the deal. SWOT analyses are also conducted to determine the strengths, weaknesses, opportunities and threats relating to the deal.
And of course the final report prepared by our team of advisors or consultants will be drafted in Russian and in English at the very least and could also be translated into any language you would prefer.
We look forward to meeting you and discussing your projects.
If you would like to find out more about our services, please feel free to contact us by phone: +7 495 788 00 05, by email: firstname.lastname@example.org or filling the contact form below. We will get back to you as soon as possible.