Pre-investment Financial and Tax Diagnostics

The modern business is sure to be connected with the financial investments: It is necessary to buy equipment for optimization of the internal work; bigger companies need new offices and branches. Irrespective of the sphere, where the entrepreneurs intend to invest, they require preliminary analysis and assessment of the investments. Such methods will help to assess the business development efficiency in different situations, and will show how such investments will influence partners of the company and bank institutions, with which the company cooperates, and change internal management system of the company.

Assessment of investments in the company is a method which will help to prevent many problems and consequences of poor investment decisions. Besides, correct assessment of  the investments allows to inspect potential purchase objects in terms of reliability of all the reports, including financial and tax reports, and detect threats and pitfalls which can be faced by the investor. Correspondingly, pre-investment financial and tax expertise is aimed at detection of the financial and tax risks, search of opportunities for mitigation of these risks, assessment of investment attractiveness and financial reliability of the investment vehicles.

The purpose of the financial and tax expertise is not only to detect the investment risks. It is an efficient tool for optimization of corporate and tax structure of the business in order to protect assets from hostile acquisition and improve financial management system of the company.

Consulting company EBS offers professional services relating to pre-investment financial and tax expertise of the object.

Assessment and expertise of investments

The EBS professionals carry out detailed assessment of investment risks. Without it, the buyer can face unpleasant circumstances of the investments:

  1. Poor purchase decision (i.e. the purchased office or branch can be useless for business development). Therefore you need assessment of investment efficiency.
  2. Scam During the last 5 years we have witnessed development of specific “business”: The person is selling the objects, which are ready for operation, but after payment of deposit or full amount, the seller simply disappears. In order to avoid this, it is necessary to review reports of the seller for a certain period of time.
  3. Excess payment. Inexperienced buyer can pay much more than the object really costs.

Investments have a lot of risks; that is why it is better for the owners of the enterprise to address the professional company, which can provide comprehensive assistance during selection and purchase of the object, in order not to make a mistake.

In the framework of the financial expertise the EBS professionals analyze such key features of the company as:

  • Company’s assets
  • Company’s liabilities relating to the contractors
  • Profits analysis
  • Expenditures analysis
  • Cash flow analysis
  • Financial analysis — analysis of the profitability, financial solvency, liquidity, etc.
  • Assessment of company’s financial management system
  • Assessment of internal control system

As a result of financial and tax expertise the client receives a detailed report on:

  • Financial analysis of all key aspects of the company’s activities
  • Analysis of the company’s tax system with detection of all weak points
  • Assessment of key risks and recommendations on their mitigation
  • Investment attractiveness and financial reliability of the business

ADVANTAGES

  • Obtainment of the expert opinion on investment attractiveness of the company, availability of investment risks and business profitability;
  • Obtainment of independent opinion on the existing financial system, expert conclusions on condition and perspectives of the existing financial system of the enterprise;
  • Detection and assessment of existing and hidden risks;
  • Opportunity to evaluate manageability and controllability of business, detect drawbacks of the tax and financial systems, avoid or significantly reduce risks of potential financial penalties on the part of the contractors and state institutions, etc.

Competent investments can help enterprise to increase performance and, as a result, its profit. But it is necessary to remember, that all big investments are connected with certain risks, which should be avoided. EBS can help you to do this.

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