transaction services

Transaction advisory services in the Czech Republic

Consulting services

Investors' needs change over time, leading to various types of transformation of corporate structures, mergers, acquisitions or company splits. Crowe's team of experts provides advisory services in the following areas.

Due diligence

Due diligence is a review of corporate information that includes in particular legal, financial and tax areas of the business. The aim of  due diligence process is to provide credible, relevant and unbiased information for the client's needs. Since, as is customary in M&A (mergers & acquisitions), individual transactions have a high level of specificity. Due diligence, unlike statutory audit, focuses on areas that are requested by the client. Although due diligence is usually performed at the request of the buyer, it is not uncommon for due diligence to be performed at the request of the seller or the bank.

With our tax advisors and attorneys, we are able to offer a complete due diligence to cover all areas mentioned above. We are ready to prepare a tailored offer for you!

Due diligence Czech Republic

Within due diligence service, we provide a comprehensive analysis of the company that is the subject of the transaction.

Due diligence is an examination or in other words an analysis of a company's legal status, its value and standing. The conclusions of due diligence are used for making an investment decision and are an indispensable part of the investment process. The due diligence findings help to determine not only the potential risks of the planned investment, but also to determine its potential and the opportunities it may bring.

Due diligence in Czech Republic

Basic information about a company operating in the Czech Republic can be found in the Czech Commercial Register, however, the data is certainly not sufficient for a potential investor. Therefore, a detailed analysis of the company, i.e. due diligence, is requested.

Due diligence carried out by Crowe Czech Republic's experts primarily means acting in the client's best interest while observing due diligence, standards and code of ethics and guaranteeing impartiality and complete objectivity.

Who initiates due diligence and when?

Due diligence is primarily addressed to investors planning, for example, an acquisition or takeover of a given business entity, but it is equally good for entities that are being restructured. The scope of due diligence is usually determined individually for each client in order to meet the expectations and requirements of, for example, a potential investor and to provide important information to help make a key decision.

Due diligence is therefore carried out before deciding to proceed with a purchase, takeover or sale of a company, a merger of companies, their IPO or if restructuring takes place or when attracting an external investor. The party requesting the due diligence may be the company to be audited or another entity intending to purchase it, for example. It also happens that the party ordering due diligence of a company is a bank or an institution granting a loan to the company.

Why due diligence at Crowe Czech Republic?

Crowe Czech Republic team of experts provide professional business services. The company is a member of the Crowe Global network, operating in 150 countries around the world. Our professionals know best the Czech market, but also, as a member firm of Crowe Global, offer international expertise in a broad range of consulting practices, including audit services, due diligence and M&A.

We conduct due diligence in the areas of:

  • financial due diligence
  • tax due diligence
  • legal due diligence
  • IT due diligence
  • HR due diligence

With our tax advisors and attorneys, we are able to offer a complete due diligence tailored to your needs. In our work, we are driven by the due diligence principle, we thoroughly and diligently analyse the documentation provided, and we carefully assess potential risks. We always act in the best interests of our clients and operate in accordance with the adopted code of ethics. The outcome of our due diligence work is a final report presenting the results of the analysis and the conclusions.

Due diligence Czech Republic – final report

The due diligence process results in the preparation of a report containing both a facts-based assessment as well as recommendations along with the evaluation of potential risks. The analyses and conclusions included in the due diligence report are of great value for the client commissioning the audit, and it is not uncommon for the final report to be preceded by a draft version, i.e. a report in draft form, which serves, inter alia, to adjust the scope of the audit once the preliminary data and conclusions are known.

In Crowe we entrust all due diligence activities to our experienced specialists. We are experienced not only in carrying out due diligence analyses, but also have many years of experience in carrying out various types of audits, including statutory audit and internal audit.

Audit services related to business transformations

Our audit team is fully prepared to provide audit services for business transformations:

  • Audit of merging companies: All companies that are part of a merger are subject to obligatory audit, provided that at least one of the companies has had an obligatory audit;
  • Preparation of opening balance sheet: Preparation of opening balance sheet after a merger or demerger is a necessary part of mergers and demergers. If you are not sure how to approach the preparation of the opening balance sheet, we will be happy to help you;
  • Audit of the opening balance sheet: If the final financial statements of the companies entering into a business transformation have been mandatorily audited, there is also the obligation to audit the opening balance sheet prepared as at the decisive date.

Contact our expert

Tomáš Uvíra
Tomáš Uvíra
Audit and Accounting Director

Audit services