Financial due diligence analysis of business operations of a branch of one domestic enterprise

Abstract

For the purpose of writing this paper, a financial analysis known as "due diligence" was carried out in a branch of one domestic company (hereinafter referred to as the Branch) for the period 2012-2017. The idea was to restructure it by means of reorganization. Due diligence is an expression that is used in all English-speaking countries, for all types of in-depth analysis. The current corporate practice suggests that due diligence is one of the most important steps undertaken in the process of a sales transaction of a company, by which contracting sales or restructuring for some other purpose is assessed from a financial, legal and technical aspect. The carried-out analysis of the branch's business has shown that the analyzed subject did not have satisfactory financial indicators in the analyzed period, which we will explain in this paper. The analysis period includes six last business years from 2012 to 2017.

Keywords

• financial analysis
• financial indicators
• restructuring
• reorganization