Due diligence

Due diligence is a thorough analysis of the acquired company, within which business, financial, tax, legal and IT risks are analyzed.

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.

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

2021-Kristo Karilaid-250x250px.png„In business, it’s important to surround yourself with smart advisers, because you can’t be a specialist in all fields yourself. Purchasing a company is not our everyday activity and that’s why we picked Grant Thornton Baltic as our adviser. Our years of cooperation show that we made the right decision.


In autumn 2018, Grant Thornton Baltic provided consultation to us in a transaction in which we acquired the right to sell Peugeot and Hyundai
vehicles in Estonia. We acquired AFT Capital OÜ, whose subsidiary Auto Forte Tallinn OÜ was the official dealer of Peugeot and Hyundai. Grant Thornton Baltic provided advice to us in dictating the conditions for the acquisition of the companies, determining the assets to be transferred, drafting of contracts and price negotiations.

We have a very high appreciation for Grant Thornton Baltic’s contribution in reviewing the contract of sale and the advisers’ attention to detail when it came to even the tiniest aspects when performing the due diligence of AFT Capital.“

Kristo Karilaid
Member of the management board
United Motors AS

Testimonials A selection of purchase, sale and M&A projects done by our advisors.

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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June 2019

Lithuanian company EUGESTA aqcuired well-known Estonian coffee equipment vendor

Legal, tax and financial adviory

In spring 2019 Grant Thornton Baltic provided advisory services to Lithuanian company EUGESTA Latvian unit EUGESTA un Partneri SIA for purchasing KAFO Eesti OÜ.

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December 2018

United Motors to acquire Peugeot and Hyundai distributor

Legal, tax and financial advisory

Grant Thornton Baltic advised United Motors AS in acquiring Auto Forte Tallinn OÜ, which is the official retailer of Peugeot and Hyundai vehicles.

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June 2017

Estonian BMW dealership changed hands

Legal, tax and financial advisory

Grant Thornton Baltic advised the sale of AS United Motors (BMW, Mini, Kia) vehicles retail business in Estonia to Inchcape Motors Estonia OÜ.

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October 2017

Military vehicle maintenance company was sold to the Finns

Legal and financial advisory

A Finnish company acquired the majority shareholding in the Milrem LCM OÜ, a company that provides maintenance and repair work for Estonian Defence Forces armoured vehicles and other military vehicles.

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