Due Diligence in the purchase of an Italian company is an essential step if you consider buying an Italian company.
The purchase of a company is an extraordinary transaction that consists of several steps:
– The definition of intents (Letter of Intents) in which the parties agree on the steps and objectives of the operation;
– The technical-legal analysis of the company to be purchased (Due Diligence) with which the buyer investigates all aspects of the company he wants to buy;
– The preliminary agreement which defines, in light of the Due Diligence carried out, all aspects of the purchase;
– The closing, in which the signing of the final purchase deed takes place.
Due Diligence: an essential tool.
Due Diligence plays an essential role in the various stages of the company purchase transaction.
In fact, through this tool, the buyer knows every detail of the company he is buying and understands precisely the convenience of the operation.
This phase, which can take some time, must be carried out by various professionals, mainly in the legal and accounting fields.
Based on the type and size of the company, the Due Diligence may concern:
– Legal aspects concern contracts, corporate structure and governance, industrial and intellectual property, administrative and environmental authorizations, employees, competition, social security and compliance.
– Financial and accounting aspects related to financial statements and accounting records, investors, debits and credits
– Assessment of the actual value of the company and the definition of the sale price.
Since this is a purchase from an Italian company, the Due Diligence will be carried out according to the canons of the Italian legal system.
Therefore, every aspect will be analyzed according to the civil code regulations and Italian laws.
What to pay attention to when buying an Italian company.
The complexity of Italian regulations, especially in tax and accounting matters, requires particular attention in carrying out Due Diligence.
Sometimes it is tempting to close a deal by looking only at the commercial aspects.
Although the Italian market is particularly attractive, it is advisable to focus carefully on all legal, tax and accounting aspects before making the purchase.
Through an analytical report of the corporate situation, the consultants will provide an accurate overview of the company’s situation and any critical issues, thus allowing the buyer to evaluate the transaction better.
If you need assistance in carrying out a due diligence