Company Assessment and Due Diligence
Company assessment is that activity which allows to make an estimate of the economic capital of companies, since annual financial statements are not sufficient for an accurate representation of the company value.
Company assessment or an assessment of parts of it can be carried-out for different purposes:
- Assessment for the selling/buying of a firm;
- Assessment to proceed with operations of merging/splitting-up/transformation;
- Assessment for succession purposes;
- Assessment so as to plan business activities;
- Assessment for the conferral of assets;
The constant dialogue between the Client and the Professionals of our Office is extremely important, since different methods for proceeding with an assessment exist, and every method brings a different configuration of the economic capital with varied information. So before proceeding with an assessment it’s important to know the final aim for which a company is being assessed.
In some cases the law makes the assessment mandatory (such as in the case of conferral of assets in limited liability companies), whereas in other cases the assessment is voluntary.
