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Due Diligence
At PHC Advisory we assist Clients with comprehensive due diligence reports and assessments.
Due diligence is a comprehensive investigative analysis of a target company, focusing on financial, tax, human resource, and operational status, that is conducted before the investment, acquisition, or partnership. The main purpose of a due diligence is to identify hidden risks, spot red flags, verify business authenticity, to assess compliance with relevant administrative and regulatory framework and support data-driven transaction decisions.
Services
Financial Due Diligence
The financial due diligence aims to verify a target’s financial performance and position, to verify the accuracy of its financial statements, revenue and cost structures, assets and liability status, cash flow authenticity, and financial risk exposure, and to deliver objective financial assessments for investment and transactions and determining profitability.
At PHC Advisory we assist Clients in performing financial due diligence before the investment is carried out. We verify the sustainability of turnover, EBITDA and other margins, normalize EBITDA and operating margin, analyze working capital requirements, map revenue and costs, verify key assets, liabilities and contingent obligations, with the ultimate objective of assessing the reasonableness of the transaction price, and identify material financial risks and value impacting items for the Client.
Tax Due Diligence
The tax due diligence focuses on tax matters and is finalized to analyze and inspect historical and outstanding tax compliance, and identify potential and contingent tax liabilities, unpaid taxes, potential penalties, and tax risks.
At PHC Advisory we help our Clients to assess the Target’s overall tax health to avoid post-transaction tax liabilities, covering CIT compliance, VAT filing consistency, IIT withholding, permanent establishment risks, transfer pricing documentation, and advise on representations, warranties, and price adjustments accordingly.
HR Due Diligence
HR due diligence assesses and identifies labor liabilities, generally one of the most underestimated risks during M&A. HR due diligence reviews labor compliance, employment contracts, salary and welfare structure, social insurance compliance, and labor disputes.
At PHC Advisory we help our Clients to evaluate human resource-related risks and integration costs, by reviewing employment contracts, social insurance and housing fund registration and payment history, undisclosed headcount, unlawful termination exposure, and the treatment of dispatched and contractor workers.
Enterprise Valuations
Enterprise valuation refers to the process of determining the economic value of a Target company or business unit, typically as the final output of an M&A process, using recognized methodologies to support transaction pricing, regulatory filings, or dispute resolution.
At PHC Advisory we assist Clients in preparing independent and unbiased valuations using different methodologies, including the discounted cash flow, the comparable multiples, or the net asset value approach, calibrated to the characteristics of each local market. Our assistance covers both buyers intending to acquire new equity or assets, and sellers wishing to understand the fair value of their holdings.
Why PHC Advisory for Due Diligence?
At PHC Advisory we assist Clients with comprehensive due diligence reports and assessments, with clear risk alerts and improvement recommendations. The due diligence could also be tailored to target specific areas only, such as finance, tax, and human resources.
Who We Serve
- Acquirers and strategic investors
- Private equity firms and investors
- Venture capitalists
- Multinational groups entering joint ventures or partnerships
- Mid-market corporates
- Business owners considering a sale, merger or partnership
FAQ's
A due diligence analyzes a target’s financial, tax, human resource and operational status to identify hidden risks, spot red flags and verify business authenticity. It can be comprehensive or tailored to specific areas, such as finance, tax or human resources.
