Company Due Diligence in Croatia

Company due diligence in Croatia implies the investigation and audit of a potential investment with the purpose of confirming the financial and legal status of the business entity. Since Croatia joined the European Union, the number of newly formed companies has started to grow and due diligence has become a necessity. Any investor looking to sign a deal with a Croatian company should evaluate the economic risks of entering a financial relation. It is highly advisable to turn to the professional help of a Croatian law firm when conducting company due diligence.  

Types of due diligence in Croatia

According to the Croatian Commercial Code, several types of due diligence are available to businessmen who want to invest in Croatia. These include the following:

•    structuring advise;
•    financial due diligence;
•    purchase and sale agreements;
•    market and commercial due diligence;
•    real estate due diligence;
•    post-deal due diligence.

Company due diligence in Croatia is done by analyzing annual reports, security and exchange commission filings and bookkeeping and balance sheets. Through company due diligence, a businessmen verifies whether the potential investment fits his/her return requirements, the risk tolerance, the income needs and assets allocation goals. Our lawyers in Croatia can give you extensive information about the procedures of company due diligence.

Company due diligence process in Croatia

Before purchasing a company in Croatia, any businessmen should engage in company due diligence. There are several steps to take into consideration when performing company due diligence in Croatia. These are:

•  Analyze the capitalization of the company – gather information about its size, market capitalization and the type of ownership;
• Check the revenue, profit and margin trends – verify the annual reports of the company and the balance sheets;
•   Evaluate the industry and the company`s competitors;
•  Gather information about share ownership and management of the company – the Croatian Trade Register is the institution where you can access this information.

If you want to start a business and need professional company due diligence services, don`t hesitate to contact our attorneys in Croatia.