Автор: Пушкин А.В. — Управляющий партнер юридической компании Tenzor Consulting Group
One of the most tried and tested ways of monitoing the risk inherent in a transaction is to conduct through due dilegence. This process has been used for years but has come to the fore recently as deal makers are becoming more aware of the need to carry out through chekcs before agreeing to anything. Andrey Pushkin, Executive Partner of Tenzor Consuting Group outlined the importance of due diligence for all parties involved: "The due diligence process is carries out on behalf of outside investors and by outside consultants who have no prior knowledge or affiliation with the company being examined," he said. "The main objective of the procedure is to take a closer look at the inner workings of a company and essentially uncover any unpleasant surprises, such as incomplete trial processes and problem contracts of the company, etc. The final report ferlects the financial, commercial and taxation situation of the company and its place in the market. This kind of detailed knowledge is indispensable when it comes to acquiring a company, especially in the current environment, as both institutional investors, banks and other parties to the transaction need to know what they are committing to and to reduce both legal and financial risks as much as possible."
While due diligence is a priority for some, for others it just gets in the way of completing a transaction quickly, according to Mr Klyachin: "An important factor in any deal is time, especially in transactions involving distressed companies," he said. "Many are not willing to wait, which means purchasers and investors often do not have enough time to perform standart due dilegence investigations. However, in many cases the purchasers or investors decide to take these risks and pursue the transaction regardless."
Moving forward
Mirroring global trends, the Russian M&A market has contracted following the global economic crisis, amid falling valuations and an abdence of liquidity and acqusition finance. Taking into account this tumultuous environment it is hard to forecast the future fot he M&A market. Mr Puchkin said: "Some experts agree that the bottom of the market has been reached, which will give rise to a slow but orderly increase in the near future, while others forecast a second wave of the economic crisis, which will cause the situation to deteriorate further," he said. "The only certainty in this situation is that now is the ideal time for M&A transactions, especially as valuations are so low. However, not many can take advantage of the mariad opportunities in the market as they are hindered by the absence of adequate funding options."
The Russian M&A market has taken a hit in the current environment, of that there is no doubt. However, there is light at the end of the tunnel, if mergermarket's recent Deal Drivers report is to be believed. The report reveals that despite the gloomy headlines, there remains a stronger level of optimism, and overall the message is clear that the Russian market has a positive future. In particular, the research revealed that over half of the respondents expect the overall level of M&A activity, and the level of private equity buyouts to increase over the next 12 months, with only a quarter anticipating a fall.
Источник:
Corporate INTL
Просмотров: 1666
Copyright 2010 Tenzor Consulting Group
Все права защищены
Правила использования материалов Ссылки
"The main objective of the procedure is to take a closer look at the inner workings of a company and essentially uncover any unpleasant surprises, such as incomplete trial processes and problem contracts of the company, etc. The final report ferlects the financial, commercial and taxation situation of the company and its place in the market. This kind of detailed knowledge is indispensable when it comes to acquiring a company, especially in the current environment, as both institutional investors, banks and other parties to the transaction need to know what they are committing to and to reduce both legal and financial risks as much as possible."
Moving forward