Business Advisory and Tax Consulting

for companies doing business in the Philippines

Due Diligence Reports & Services in the Philippines

K&C performs due diligence (legal, financial accounting and tax) for local and foreign companies that are considering investments, strategic partnerships, mergers, and acquisitions or that are looking to enhance organizational effectiveness in an existing company.  K&C generates valuable due diligence reports for our clientele that become an essential component of their decision-making and negotiation processes. K&C will perform investigation or audit of a potential investment to confirm all material facts verify all legal, financial and tax related material.

Scope of Full Due Diligence

• Prospective level of profitability and its sustainability
• Quality of earnings
• Quality of assets
• Significant tax exposure
• Other unrecorded liabilities
• Contingent liabilities
• Synergies with the investor’s operation
• Weaknesses in operation or areas for improvements to be addressed during integration

Legal Due Diligence

K&C can perform legal due diligence which may consist of a scrutiny of all, or specific parts, of the legal affairs of the target company with a view of identifying any legal risks and provide the buyer with an extensive insight into the company’s legal matters. Additionally, a carefully executed legal due diligence by K&Cs team may improve the buyer’s bargaining position and ensures that necessary precautions in relation to the transaction be taken.

Legal Due Diligence Breakdown

• Gathering of information from the target company
• Uncovering of the target company’s strengths and weaknesses
• Identifying relevant risks and advantages in connection with the transaction
• Minimizing the risk of unexpected situations
• Improvement of the seller’s bargaining position
• Identification of areas where representations and warranties from the seller

Financial Accounting Due Diligence

Financial Due Diligence is evaluating the current financial condition and prospective performance of the target company. The Information Memorandum which contains brief information about the target company and its operation, and audited financial statements with accompanying notes

The K&C Financial Accounting Due Diligence team is comprised of experienced CPAs who analyze quality of earnings and working capital requirements through financial statements, independent auditor work papers and on-site discussions with company principles. Our focused approach enables us to quickly identify and understand potential deal breakers, value drivers and other areas of specific interest to K&C clients.

Financial Accounting Due Diligence Breakdown

• Assess the target’s quality of earnings
• Analyze cash flows
• Review balance sheet assets and liabilities
• Identify key business drivers, trends in profitability and significant concentrations of risk
• Evaluate departmental and executive forecasts
• Conduct comprehensive discussions with executives and other company principles

Tax Due Diligence

During our tax due diligence our CPAs and Tax Specialists analyze historical tax returns and financial statements to identify tax risks and opportunities associated with a contemplated transaction. We work closely with our clients and their legal advisers to develop a tax efficient deal structure.  K&C provides independent and objective accounting due diligence to help clients make informed purchasing and sale decisions in the Philippines.

Tax Due Diligence Breakdown

• Perform merger & acquisition or business reorganization tax diligence
• Identify potential tax refund
• Identify accounting method opportunities and risks
• Assist in structuring transactions in a tax-efficient manner
• Integrate and optimize tax department processes

30-A Chatham House
116 Valero, cor. Rufino, Makati, Metro-Manila
Philippines

Phone: (+63)2-856-7517
Fax: (+63)2-856-7720
Mobile: (+63)917-8662266
Mobile: (+63)919-6964680

info@kittelsoncarpo.com