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Czech Property Investments – Tax and financial due diligence

Project

In 2010 and 2011, CPI was the biggest investor in real estate in the Czech Republic. As CPI for the most part purchased real estate in share deals (i.e., it purchased whole companies that owned the real estate), it was necessary to perform due diligence, i.e., verify the tax, financial, and legal situation of each company to prevent the purchase from representing a risk for the buyer and to make it possible to handle risks, if any, in the contract. The tax department of RSM CZ performed tax due diligence and supervised financial due diligence, helped negotiate tax and financial guarantees in the contract on the transfer of shares, verified the calculation of the purchase price, and helped negotiate the price.

How we helped

Kateřina Provodová: “We helped the client identify tax and accounting risks arising from the history of the real estate companies and handle them in contracts so the seller would bear the responsibility wherever possible. We helped the client negotiate the most advantageous purchase price.”

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