Extended Due Diligence (EDD)

In a world where business risks are becoming more complex and less obvious, Enhanced Due Diligence (EDD) is becoming an indispensable tool for ensuring safe and profitable cooperation.

“Prikhodko and Partners” offers an innovative approach to EDD, which allows our clients to be one step ahead of potential threats.

What is EDD and why is it critically important?

EDD is an in-depth analysis of a potential partner or investment object that goes far beyond the scope of a standard check. It includes a detailed study of the financial, legal, operational and reputational aspects of a company or individual, with a particular focus on identifying hidden risks and potential problems.

Key elements of EDD from “Prikhodko and Partners”:

1. In-depth financial analysis:
   • Detailed study of financial statements for the past 5-7 years.
   • Analysis of cash flows and detection of suspicious transactions.
   • Assessment of tax risks and potential hidden liabilities.
2. Comprehensive legal check:
   • Analysis of corporate structure and history of ownership changes.
   • Verification of all licenses, permits and certificates.
   • Study of court cases and potential legal risks.
3. Advanced reputation analysis:
   • Study of the public profile of the company and key persons.
   • Analysis of Politically Exposed Persons (PEPs).
   • Monitoring of mass media and social networks for negative information.
4. Assessment of operational risks:
   • Analysis of business processes and internal control system.
   • Assessment of dependence on key customers and suppliers.
   • Study of personnel policy and risks related to personnel.
5. Analysis of the market situation:
   • Evaluation of the company’s competitive position on the market.
   • Analysis of prospects for the development of the industry.
   • Study of regulatory risks and potential changes in legislation.

Our approach to EDD:

• Individual strategy: We develop a unique inspection plan for each client.
• Interdisciplinary expertise: We attract specialists from various fields of law, finance and business analytics.
• Use of advanced technologies: We use AI and Big Data to process large volumes of information.
• International network: We work with partners around the world to conduct cross-border inspections.
• Complete privacy: We guarantee the protection of all received information.

Real cases of EDD from “Prikhodko and Partners”:

B2B case: Verification of the supplier in the energy sector

Situation: A large Ukrainian energy company planned to conclude a long-term contract for the supply of equipment with a European manufacturer in the amount of €50 million.

Challenge: The need to assess not only financial stability, but also technological reliability and compliance with EU environmental standards.

Our actions:

• An in-depth analysis of financial statements and ownership structure was conducted.
• A technical audit of the production facilities and the quality control system was carried out.
• Environmental practices and compliance with international standards were analyzed.
• The risks associated with sanctions and the geopolitical situation were assessed.

Result:

• Potential problems with the supply of key components due to sanctions restrictions have been identified.
• The non-compliance of part of the products with the new EU environmental standards has been identified.
• The client revised the terms of the contract to include requirements for modernization of production and guarantees of uninterrupted supply.

B2C case: Investment in a chain of fast food restaurants

Situation: A private investor planned to purchase a franchise of an international fast food chain for development in Ukraine with an investment of $10 million.

Challenge: Assessment of real prospects for brand development in the Ukrainian market and potential risks associated with the franchise model.

Our actions:

• A detailed analysis of the terms of the franchise agreement was carried out.
• An assessment of the fast food market in Ukraine and the competitive environment was carried out.
• Brand reputation and potential risks related to cultural features are analyzed.
• The financial model and investment payback terms were evaluated.

Result:

• The strict terms of the franchise agreement were revealed, which limited adaptation to the local market.
• Potential risks related to negative perception of the brand by certain groups of consumers have been identified.
• The investor revised its strategy, choosing an alternative brand with greater flexibility and better perception in the local market.

Why is EDD from “Prikhodko and Partners” your competitive advantage?

1. Minimizing risks: We detect hidden threats to the conclusion of the agreement.
2. Strengthening negotiating positions: We provide information to optimize the terms of the agreement.
3. Protection of reputation: We help to avoid cooperation with unreliable partners.
4. Compliance with international standards: We ensure compliance with the requirements of global regulators.
5. Strategic planning: We provide a complete picture for making informed business decisions.

Don’t risk your business and reputation. Contact the experts of “Prikhodko and Partners” for a professional extended credit check. Protect your investment and provide a solid foundation for successful collaboration.