Due diligence provides a detailed overview of the company. Due diligence is an important part of every purchase transaction, helping investors to take a closer look at all aspects of the company before the planned transaction. The information gathered during due diligence is also used in negotiations and helps to identify the risks to be hedged in the sales contract.

Due diligence is a thorough business, financial, tax and legal analysis of the acquired company. As a result of the analysis, we will prepare a report that provides a detailed overview of the audited company so that you can make an informed decision. This allows for a better understanding of the company's business model and key growth factors, the risks identified in the analysis and recommendations for dealing with them. The information gathered during due diligence will also be used in negotiations.

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The extent of due diligence depends on the transaction and the controlled entity, but may focus on, for example:

  • Quality of earnings - validating management adjustments, considering findings in the due diligence and one-off items, and the impacts of accounting estimates;
  • Historical trading results - analyzing growth drivers, top customers, revenue and margin development per client, segment or product and KPI’s relevant to the field;
  • Analysis of net debt to identify potential debt-like items and the seasonality and requirements of working capital;
  • Quality of financial and management reporting - commenting on the finance functions and controls, reporting and budgeting process etc.

TESTIMONIAL

Inspecta Estonia OÜ belongs to the international organization Kiwa, which ranks among the top twenty leading organizations in the world in the field of testing, technical inspection, and certification (TIC).

In 2023, we acquired the Estonian company Metrex Mõõtekeskus OÜ. The company specializes in the calibration and verification of measuring instruments, ensuring their operational functionality and proper usage. Metrex is one of the providers of weighing scale calibration and certification services. In the field of fuel tank calibration, Metrex holds a leading market position. With the addition of Metrex, our range of services at Kiwa has expanded.

The advisory team at Grant Thornton was engaged to conduct financial, legal, and tax-related due diligence, and the legal advisory team was involved in the process of signing the Share Purchase Agreement (SPA). Thanks to the professional and efficient work of the advisory team, we gained a comprehensive overview of Metrex Mõõtekeskus OÜ’s financial standing, operational strengths, market potential, and associated risks. The due diligence process contributed to negotiations regarding the terms of the purchase-sale transaction.KIWA_logo

Tõnu Roosaar
CEO of Inspecta Estonia

Financial due diligence

Financial due diligence varies notably from a financial statement audit, as it analyses and explains the reasons and drivers behind the financial numbers and changes in business performance.

The scope of the due diligence depends on the company and we work together with you to put together a scope that will help you in achieving your goals.

A thorough due diligence will help you reduce risks, identify key matters for purchase agreement negotiations and post transaction integration of the target, and make sure there are no surprises at later stages.

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TESTIMONIAL

Acton Capital Partners is a leading growth-stage Venture Capital Fund with over two decades of investment experience backed with a deep understanding of tech-enabled business models. Our mission is to support tech-enabled pioneers that create value for the long run.

In 2022, we invested in the Estonian start-up Qualitista (dba “Klaus”). The company operates a customer support quality assurance SaaS solution to track and improve customer service for SMBs and enterprises. In the investment process we engaged Grant Thornton’s advisory team to perform a financial and tax due diligence on Klaus. Considering the fast pace and nature of the start-up world, we appreciate that Grant Thornton’s specialists were able to deliver the report within the short timeline established by the parties involved.

It has been a great pleasure to work with Grant Thornton’s advisory team!

2022 Acton logo 2.pngBenedikt Sudbrock
General Counsel
Acton Capital Partners GmbH

Testimonials

A selection of purchase, sale and M&A projects done by our advisors. Check out other client projects

May 2024

Providing consultation to Pro Optika in preparation for expansion

Financial, legal and tax advisory

Our specialists provided consultation to OptiPRO OÜ, which operates a retail chain of optometry stores under the brand Pro Optika and is acquiring the holding company of the Pere Optika chain, Optiland Eesti OÜ.

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January 2024

We helped strengthen the cooperation between two large chemical companies

Tax, legal, accounting

In 2023, the German family company Bodo Möller Chemie bought the distribution rights of the brands Loctite, Teroson and Technomelt from Henkel and established a subsidiary.

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September 2023

We advised the management of Kiwa

Financial, legal and tax advisory

We advised the management of Inspecta Estonia OÜ on the acquisition of Metrex Mõõtekeskus OÜ.

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September 2023

We advised Sirowa on buying a competitor

Financial and legal advisory

International wholesaler of cosmetics, perfumes, salon products and non-prescription medicines Sirowa acquired well-known Estonian wholesaler of perfumery and beauty products.

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December 2022

We advised OÜ Rannu Seeme in the transaction of the exit of a shareholder

Legal and Tax Advisory

Grant Thornton Baltic's transaction advisory team helped the client develop the conditions for the exit of the partner, including advising on the execution and formalization of the transaction.

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November 2022

We advised a venture capital fund’s investment into the start-up Qualitista

Financial and tax advisory

In August 2022, Grant Thornton Baltic concluded a financial and tax due diligence for an Estonian start-up company Qualitista.

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November 2022

We advised the importer of Audis on the sale of a stake

Tax and legal advisory

In the spring and summer of 2022, Fourings OÜ, which brings together companies engaged in the sale and maintenance of Audis in Estonia, sold a 50 percent stake to the investment company UG Investments.

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October 2022

We advised a venture capital fund’s investment into the start-up

Tax and financial advisory

The Nordic venture capital fund Inventure invested 11.6 million euros in the Estonian startup Jobbatical in 2022.

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January 2022

We advised German company RAUMEDIC

Legal, tax and financial advisory

We advised German company RAUMEDIC AG on the acquisition of aktsiaselts A&G.

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December 2021

We advised Howden on entering the Estonian market

Legal, tax and financial advisory

Grant Thornton Baltic advised Howden Finland Oy, the market leader in Finland and part of the international group Howden Broking, on the acquisition.

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January 2021

We advised BlackFin on its investment in financial start-ups

Financial advisory

In November 2020, Grant Thornton Baltic conducted a limited financial and tax due diligence for the start-up company Modularbank, which offers customer-focused financial services as a next-generation banking platform.

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July 2019

Grant Thornton Baltic advised investors who acquired ISS Estonia

Tax and financial advisory

Grant Thornton Baltic advised investors on the acquisition of ISS Estonia's business.

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