At AFI we put at your disposal to both, buyers and sellers, the execution of due diligence in the financial and fiscal areas for the merging or acquisition of a company in El Salvador.
Due diligence is an integral part in the processes related to business mergers or acquisitions. Its main purpose is reducing the risk of the transaction, through independent evaluation of the company to be acquired, in order to identify possible hidden liabilities and risks in every area of the company to be acquired, which will be used to evaluate the feasibility to proceed or not with the acquisition of the company.
Before closing a deal for acquisition of a company, its potential buyer needs to understand the financial dynamics and validate the financial assumptions that have been done regarding the company. By analyzing and validating the financial assumptions, undesired surprises are reduced and the probability that a transaction reaches a successful conclusion increases.
We help potential buyers evaluating the price of this transaction, needs related to funding and other commercial aspects that must be taken into account. Our work includes an analysis of the income quality, cash flows and its drivers, working capital, capital expenditures, company liabilities with employees and net debt.
The main purpose of tributary due diligence for a buyer is determining the past, current and future tax liabilities of the company to be subjected to study, including divulged tax liabilities, performed and unperformed. This process helps a great deal to establish the price of the purchase and the type of guarantees and fiscal compensations included in the purchase agreement.
Our work includes checking potential risk from a legal and tributary perspective. Legal due diligence must be performed in conjunction with financial and tributary due diligence, in order to assure that key topics and risks are identified and evaluated adequately.
Some of the taxes covered by tributary due diligence in El Salvador are: income tax, profit tax, capital gain tax, valued added tax (VAT). Fiscal due diligence also includes topics such as the fulfillment of preparing and submitting different types of tax reports and applications, investigations or checkups by the Tax Administration; international transactions and transfer pricing.
In addition to the tributary due diligence services for mergers and acquisitions, at AFI we also perform independent checkups in order to evaluate and inform about the fulfillment of formal and substantive obligations, policies, procedures and the tributary risk management, to conduct independent preparation checkups for a fiscal audit.
For more information and getting a personal offer contact us toinfo@afisv.com
