Pre-acquisition financial analysis
Upon merger or acquisition of a company, the financial position of the company to be acquired need to be specified. According to the internationally accepted corporate management principles, the financial analysis of a company is an obligatory part of a merger and acquisition of companies. It is essential that pre-acquisition analysis should be performed by independent expert, who is not the party in the transaction. The essence of pre-acquisition analysis is to ascertain the company’s position in a certain moment in time.
The objective of the pre-acquisition financial analysis will be agreed in the engagement letter before commencing the work. The special attention can be drawn on overall situation or on the specific area.