Mini due diligence in the Czech Republic

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Tax-focused mini due diligence

Mini due diligence is a fast, targeted review of a company’s or business partner’s tax position, designed to identify key risks before smaller transactions, particularly in relation to significant tax risks.

Unlike a full-scale due diligence, this service focuses exclusively on areas with the highest potential impact on transaction value, cash flow, and future liabilities.
The outcome is a clear, concise risk overview that supports confident decision-making – without unnecessary delays or excessive costs.

Why mini due diligence matters in the Czech market?

This service is particularly relevant for companies operating in or entering the Czech Republic, where local tax specifics and market practices can materially influence transaction outcomes. A targeted mini due diligence helps management teams address the most common Czech-market risks early and efficiently.

Key factors that make mini due diligence essential in the Czech context include:

Local tax interpretation and practice
Differences in how Czech tax authorities interpret and enforce tax regulations, particularly in VAT, corporate income tax, and payroll taxes.
VAT and cross-border transaction risks
Frequent issues related to intra-EU supplies, import/export transactions, and correct VAT treatment in cross-border structures.
Transfer pricing documentation quality
Inconsistent or incomplete transfer pricing documentation, which may expose companies to additional assessments and penalties.
Hidden liabilities and post-transaction exposure
Tax risks that may not be visible in financial statements but can lead to reassessments, interest, or penalties after closing.

By identifying these issues early, mini due diligence enables CFOs and Chief Accountants to quantify risk, adjust transaction pricing, refine deal structures, or negotiate appropriate contractual protections – before potential issues turn into costly post-transaction surprises.

Mini or full due diligence?

Choose the right level of assurance

Selecting the right scope depends on transaction size, risk exposure, and timing.

Full due diligence involves deeper data analysis.

Comparison: Mini due diligence vs. full due diligence

Criteria	Mini due diligence	Full due diligence
Primary purpose	Fast identification of key tax risks	Comprehensive assessment of all material tax and legal risks
Best suited for	Smaller acquisitions, asset deals, early-stage investments, partner verification	Large or complex transactions, group restructurings, cross-border structures
Scope of review	Targeted review of high-impact tax areas	In-depth, end-to-end review of tax positions
Level of detail	Focused and selective	Extensive and detailed
Timeframe	Short, accelerated timeline	Longer, multi-phase process
Cost level	Cost-effective	Higher due to broader scope
Data volume required	Limited, risk-driven	Extensive documentation and data sets
Outcome	Snapshot of key tax exposures supporting quick decisions	Comprehensive risk assessment supporting final transaction approval
Typical management use	Proceed, renegotiate, or withdraw	Confirm transaction structure and final valuation

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When mini due diligence adds value?

Before an acquisition, investment, strategic partnership, or transaction structuring, certainty is critical.

Our Mini Due Diligence focuses on what matters most from the perspective of a new investor/owner:

Verification of compliance with Czech tax obligations
Identification of hidden tax liabilities and exposures
Assessment of tax risks affecting purchase price or deal structure
Early detection of red flags that may impact negotiations

Each review is tailored to the transaction context, ensuring maximum relevance in minimum time.

Where complexity requires it, we combine our tax expertise with external legal specialists, providing an integrated tax and legal perspective -without burdening your team with multiple advisors.

How we work – mini due diligence process

Scope definition
We agree on the transaction context, risk appetite, timeline, and key focus areas.
Targeted data review
We analyse selected tax documentation, returns, contracts, and accounting data relevant to identified risks.
Risk Identification and Assessment
We flag potential tax exposures, non-compliance areas, and issues affecting valuation or deal structure.
Clear reporting
You receive a concise, decision-oriented report, highlighting:
– Key risks
– Practical recommendations
Management discussion (optional)
We walk you through the findings and support next steps, including negotiations or escalation to full due diligence if needed.

Do you need professional support?

Send us a request for a quote and connect with our experienced experts.

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Why Crowe?

Strong experience in transaction support and tax risk assessment
Local market understanding combined with international standards
Clear communication with clients
Focus on decision-making, not just compliance

Mini due diligence is not about checking everything - it’s about checking what truly matters.

Learn more about our tax advisory services

Q&A

Is a full due diligence really necessary for this transaction?
In many Czech mid-market deals, a mini due diligence is sufficient to identify material tax risks early – saving time and advisory costs.
How reliable is a limited-scope review?
While not exhaustive, mini due diligence focuses on high-impact risk areas, which typically account for the majority of post-transaction tax issues.

We need results fast – is this realistic?
Yes. The process is designed for speed, often completed within a short timeframe, depending on data availability. However, it always depends on the cooperation of the other party.
Can this be combined with legal input?
Absolutely. For selected issues, we work with external legal advisors to provide a unified tax and legal view.