Supporting a local manufacturer acquisition transaction for an international FMCG company
Abrau supported the entry of an international FMCG company into the Uzbekistan market through the acquisition of a local production asset. We provided comprehensive financial and tax due diligence prior to the transaction.
Due diligence that impacts the transaction value
In M&A transactions, it is crucial not only to assess the business but also to properly account for risks when determining the price and terms. Our due diligence enabled the client to avoid potential losses and establish a secure transaction structure.
Project objectives
Conduct a comprehensive analysis of the financial and tax statements of the target company.
Identify hidden risks and liabilities that affect the transaction price
Provide recommendations to protect the interests of the buyer
Ensure transaction transparency and the legal integrity of the asset
What we did:
1. Financial Due Diligence:
Analysis of revenue, profitability, and cost structure
Review of cash flow movements and balance sheet
Analysis of management reporting and identification of discrepancies
Structure of receivables and payables
Identification of potentially hidden liabilities.
2. Tax Due Diligence:
Verification of the accuracy of tax calculations and payments
Analysis of tax returns and the history of interactions with regulatory authorities
Identification of risks, claims, and potential implications for the buyer
3. Conclusions and recommendations:
Key risks were identified, and compensation mechanisms were proposed:
→ price adjustment,
→ financial guarantees,
→ staged payments and deferrals
Recommendations were provided for post-transaction actions: governance oversight, structural changes, and ongoing support.
