Pre-purchase review of the financial position
The objective of the analysis of the financial position is to establish the company’s position at a certain moment of time with the objective of ensuring objective mapping of the situation.
Upon acquisition or merger of companies it is often necessary to evaluate the financial position of the other party. Analysis of the financial position of the company being purchased must be performed by an unbiased expert who is not related to performing the transaction.
For an analysis of the financial position, the objective of the work and focus of the analysis shall be agreed upon with the customer in advance. The work may encompass all of the company’s business activities during a certain period or concentrate on certain balance sheet entries or transactions only.