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Due diligence

How to sell your business successfully? Learn 7 mistakes you are likely to make when valuating and selling your company

12 October 2021
Krzysztof CIESIELSKI
Selling a company tends to be a long process that takes a couple of months. In practice, it starts much earlier than the actual negotiations with the buyer. That is when the business owner can make mistakes that will cost them dearly. What are these traps and how can they be avoided?

Due diligence – in Poland and abroad

25 May 2017
Łucja PADRAK
In March, RSM Poland participated in the European conference on due diligence. The meeting with transaction advisors from across Europe allowed for the exchange of experience and views concerning methods of conducting due diligence, which are different in Poland compared to Western countries.

Standardisation of EBITDA, or operating profit in the calculation of a company's goodwill

15 March 2017
Bartosz MIŁASZEWSKI
An interesting matter is that it is often easier to buy or sell a big company employing thousands of workers with income counted in billions rather than a company that has several or several dozen employees and generates revenue of (just) several or several dozen million. And paradoxically, it is not about the price that needs to be paid for such an enterprise.

Organisation of the due diligence process – part 4

13 February 2017
Krzysztof WOŹNIAK
Basically, the place where documents are made available by the seller to the auditor for inspection is the so-called data room. There are two ways to share information in order to carry out due diligence...

Transaction adviser as the Guardian Angel of each investor

30 January 2017
Monika SKÓRKA
It is not my purpose to enumerate the financial benefits of the due diligence process during negotiations, because this was discussed in the article "Due diligence − a service worth millions", but I want to point out the risk that is associated with too much confidence in yourself and your infallibility.

Organisation of the due diligence process – part 2

16 November 2016
Krzysztof WOŹNIAK
In connection with the said diverse economic realities where due diligence may take place, as well as due to the uneven demand of stakeholders, the analysis may involve different aspects of activity of a potential investment.

Organisation of the due diligence process – part 1

13 July 2016
Krzysztof WOŹNIAK
The condition for making right investment decisions is possessing reliable and accurate information. In sale and purchase transactions there is a significant asymmetry of information, and the seller always has a significant information advantage over the buyer. In order to minimize the risk related to their potential purchase, investors have developed a series of measures to protect their interests. Due diligence is one of the tools that should be used before making the final investment decision. It should be noted that the higher the investment risk, the more attention should be paid to it.

Can you take over any company?

4 March 2016
Bartosz MIŁASZEWSKI
At a certain stage of life of a company the owners may be considering its selling off. This may be due to a difficult market situation, synergies stemming from the merger with another entity, the age of the owners or their new plans for the future and the many diverse factors. Not every company, however, is in the position to be taken over. Well, maybe this is too strong a statement – any company is capable of being acquired, however, the price is not always attractive to the seller. Often one can hear about companies being bought “for a dime” and it does not always apply to companies in debt. Why is it that some companies change their owners under good conditions and others are never taken over?

Due diligence – a service worth millions

1 March 2015
Bartosz MIŁASZEWSKI
Let's say I purchased a company and... ... not everything is quite as I had assumed, although nobody was trying to cheat me. Does that sound familiar? I fear it does. In my job I work with people who are in charge of deciding whether to acquire another company, and if so – for what price. In the course of negotiation the price is usually established as a multiple of EBIT/EBITDA/net profit. I am personally not a supporter of this method. In my opinion it is much better to evaluate a company using the DCF methods in three scenarios: positive, neutral and negative. But who has time for such things these days? Due to its simplicity the multiple method is gaining many supporters among decision-makers.

RSM Poland among winners in the prestigious M&A Awards!

12 June 2014
On 12 June 2014 RSM Poland was awarded the title of Financial Due Diligence Provider of the Year in Poland. The awards given since 2010 by the British AI Global Media, Acquisition International Magazine and DealFlow Source are to reward the most deserving professionals in the business, legal, financial and investment communities.