Conducting a company due diligence in Estonia
is important if you plan to acquire a company
that is already operational. Company due diligence is recommended before buying a company, merging with one or entering into any type of partnership with Estonian companies. It is an important step because you must always gather as much information as you can
before engaging in business. You will have to consider legal factors
like the law that governs the kind of undertaking that you wish to enter into or practical matters like existing companies and competitors. You need not worry about how to conduct due diligence
because our Estonian lawyers
are experts in this field.
Investment sector in Estonia
Before conducting a company due diligence in Estonia
, you must first decide whether it would be a good business decision
to invest. The country’s economy is diverse and there are many industries that businessmen can choose to invest in. With an economic growth of 2.1 percent for 2016 and the government’s policy of economic freedom, businessmen have a lot to look forward to for 2017. The leading industries that are attractive for investors are wood processing, electronics, information and communication technology, food, and machinery and metal working. Our attorneys in Estonia
can advise you on which industry to invest in.
Checklist for company due diligence in Estonia
There are a lot of factors that come into conducting a company due diligence in Estonia. The associates at our law firm in Estonia have come up with a checklist for company due diligence.
1. Company ownership
As part of company due diligence
, the ownership of the corporation that you will acquire or do business with must be checked. Ownership can affect how the company conducts its business. Ownership of a company, as well as other records, can be checked at the Commercial Register of Estonia
2. Financial status
Always make sure that the company you are acquiring or partnering with is solvent or financially stable. This can be determined by examining financial statements, accounting reports, tax returns, inventory reserves history, and other information on how the company gains profits and handles losses.
3. Corporate organization
This refers to the structure of the corporation. First check the articles of incorporation of the company. This document is where you can find the firm name, address, corporate purpose and objective, and the stocks to be issued.
4. General business information
This refers to the current operations and transactions of the company. You can check business plans, current undertakings, contracts with other businesses, and marketing. You can also check company policies and employee relations. Current properties and leases must also be considered.