Financial Due Diligence in Russia | Accountant & Co.
Financial due diligence support for acquisitions, investments and corporate reviews involving Russian operations: earnings, working capital, debt, tax and reporting risks.
Financial due diligence is not a second audit. Its purpose is to understand the economics behind the reported numbers, identify items that may affect valuation or deal terms, and show where financial information needs further verification.
Accountant & Co. supports financial reviews of Russian operations for shareholders, investors, buyers, lenders and international groups.
Typical review areas
- quality and sustainability of revenue;
- EBITDA and non-recurring adjustments;
- gross margin and cost structure;
- working-capital trends and seasonality;
- net debt and debt-like items;
- cash conversion and liquidity;
- receivables and payables ageing;
- related-party and intercompany balances;
- tax and accounting exposures identified from the available records;
- consistency between management reporting, statutory accounts and supporting schedules.
Quality of earnings
Reported profit may include one-off income, unusual expenses, owner-related items, timing effects or accounting classifications that are not representative of recurring operations. We separate these items from the underlying operating performance and document the basis for each adjustment.
Working capital and debt
Transaction value can be materially affected by the definition of normal working capital and by liabilities that behave economically like debt. We review trends, ageing, accruals, deferred items and other balances that may influence completion accounts or the final transaction structure.
Data-room review
A practical diligence process usually begins with a focused information request rather than an indiscriminate document list. The review can include:
- statutory and management financial statements;
- trial balances and general-ledger extracts;
- revenue and margin data;
- bank and debt schedules;
- receivables and payables ageing;
- tax returns and reconciliations made available for review;
- significant contracts and related-party information relevant to the financial analysis.
Deliverable
Depending on the scope, the output can include an executive summary, key financial findings, normalized earnings bridge, working-capital analysis, net-debt observations, issue log and questions requiring management clarification.
The work is designed to distinguish confirmed findings from assumptions and unresolved items. Where legal, tax or specialist advice is required outside the agreed financial scope, that issue should be referred to the appropriate adviser rather than presented as a concluded legal opinion.
Related services
See Audit Services, Financial Modeling and Cross-Border Finance.
Contact Accountant & Co. to define the transaction, target entity, review period and available data.
Financial due diligence scope depends on the transaction and information made available. It is not a statutory audit, legal opinion or guarantee of future performance.