At Genprox, we prepare comprehensive due diligence reports covering finance and tax areas. In the executive summary, we highlight key business issues and risks, for which we provide mitigating measures and recommended actions. We deliver our services to companies of various sizes, investors, private equity funds, and financial advisors.
Genprox advisors hold professional licenses as investment advisors, ACCA, and tax advisors, which guarantees the delivery of top-quality services in line with the best market standards and practices. Thanks to extensive, multi-sector experience gained in international consulting firms and financial institutions, we are able to comprehensively analyze the financial and business situation of any company.
In the first stage of project initiation, a team responsible for conducting the financial due diligence should be assembled, including specialists in areas such as finance, tax, and law. Next, the scope of work is defined, identifying key areas of analysis such as cash flows, liabilities, or revenue stability, and setting priorities. At the same time, a project timeline is developed, defining key milestones and their deadlines, e.g., time for collecting documentation, analyzing data, and identifying risks.
The second stage involves preparing a checklist of required documents, such as financial statements, client contracts, invoices, bank statements, and tax documents. It is important to designate a contact person on the side of the company under review, who will be responsible for efficiently providing the documentation. All materials should be organized and centralized in an appropriate system, such as a virtual data room, with access granted only to project team members.
At this stage, responsibilities within the team are allocated, assigning analysts to specific areas such as revenues, costs, taxes, or liquidity. The team then carries out a detailed verification of the provided data, focusing on their accuracy and the identification of any inconsistencies. Regular project team meetings allow for the discussion of progress, encountered challenges, and key findings, ensuring consistency and efficiency of actions.
At this stage, the preliminary results of the analysis are summarized to identify the most significant risks and potential financial issues of the company under review. If gaps in documentation or uncertainties are found, the management of the target company receives additional.
The final stage includes preparing a comprehensive report containing the results of the financial analysis, the identification of risks, and specific recommendations for further actions. The completed report is presented to the project team as well as to investors or other stakeholders during the final presentation. After discussing the results, the project is closed by collecting feedback from stakeholders and archiving the documentation, ensuring the possibility of referring back to the analysis in the future.
The key benefits of the due diligence process for the buyer include the identification of significant risks and areas requiring improvement. Quantifying the identified risks is crucial in negotiating the price and terms of the investment agreement. The mitigating measures indicated in the report make it possible to address and hedge some of the risks, while the recommended actions allow for improving the company’s operational and financial performance in specific areas.
Throughout the entire due diligence audit, we communicate progress and key findings to clients to ensure that the investment process proceeds according to the agreed timeline. We possess broad professional expertise, holding certifications such as Investment Advisor, ACCA, and Tax Advisor. We specialize in financial and accounting services for VC funds, which allows us to have a deep understanding of the expectations of this type of client.
In carrying out our analytical work, we are guided by our professional judgment, industry experience, and professional standards, compliance with which is required by our membership in the following organizations as well as by applicable laws:
As part of the due diligence review, we cover the following areas:
When carrying out projects, we do not limit ourselves solely to our scope of work. We remain in constant contact with other advisors (e.g., legal, environmental, technical) to comprehensively address all concerns that may arise during the due diligence process, ensuring maximum value delivery for the parties to the transaction.
Genprox has completed several hundred due diligence projects. Our main clients are venture capital funds, private equity funds, as well as high-net-worth private investors. The companies we review most often come from the following industries:
At Genprox, we combine theoretical knowledge with market practice. We are a fully independent, self-financed entity, which ensures the impartiality and objectivity of our analyses.
We have experience in conducting both comprehensive due diligence of companies with significant revenues and compact reviews of start-ups prior to technology commercialization.
We are an accounting and advisory firm specializing in the accounting of AIFs. We possess broad professional expertise and hold certifications such as Investment Advisor, ACCA, and Tax Advisor. This enables the VC funds we serve to receive, in one place, a comprehensive service unavailable from any other accounting firm or law office. We specialize in servicing VC funds and have a deep understanding of their reporting needs. As a result, we are able to provide full accounting, tax, and reporting support for any type of VC/PE fund in Poland as well as for alternative funds in Luxembourg.
Due diligence is a process of assessing a company, most often carried out in the context of capital investments. During such an analysis, the potential buyer ensures that the actual state of the company is consistent with the representations made by the other party. The scope of the due diligence review depends on the preferences of the potential buyer, who determines the key areas requiring in-depth analysis.
The key feature of a due diligence review is an impartial, expert assessment of the actual state of the investment target in its key legal, formal, and business aspects. This helps minimize the information asymmetry between current owners and the new investor, or to objectively evaluate the company’s current situation and the associated risks.
The due diligence process is tailored to the expectations of the potential investor. The company under review gains not only a formal verification of its compliance with market standards but also support in addressing historical issues or process shortcomings within its ongoing operations.
Having a reliable due diligence report enables rational investment decision-making and effective negotiation of the investment agreement. In addition, the remedial measures and action recommendations indicated in the report help mitigate business and financial risks and improve the company’s operations in specific areas.
By commissioning the preparation of a due diligence report to experienced and independent specialists, you gain assurance of professional service delivery and a high degree of credibility among stakeholders, such as members of the investment committee or co-investors in the transaction.
There are many entities on the market that carry out due diligence projects, including consulting firms, advisory companies, and brokerage houses. To make the right choice of advisor, it is worth considering the reputation and experience of the experts.
The cost of conducting a business valuation depends significantly on the agreed scope of work and the expectations of the investors. When estimating the workload of the project, factors such as the company’s business model and the scale of its operations should be taken into account. The group structure and its history should also be considered. The cost of due diligence reviews generally ranges from several thousand to several tens of thousands of PLN. For relatively young entities, it should be assumed that the cost of such a process will typically fall within the range of a dozen to a few dozen thousand PLN.
The cost of a due diligence review depends on many factors, such as the scope of analysis, the size and complexity of the company under review, as well as the specific requirements of the investor. At Genprox, we offer a flexible approach to pricing our services, tailoring costs to the individual needs and expectations of the client. We encourage you to contact us to receive a detailed quote and learn more about our competitive rates and comprehensive service packages. Take advantage of a free consultation to discuss your needs and receive a personalized offer.