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Due Diligence for Financial Transactions in El Salvador: A Critical Step in Mergers and Acquisitions

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In today’s fast-paced business environment, due diligence has become an essential step in mergers and acquisitions. For companies looking to expand their operations or acquire new assets in El Salvador, understanding the financial and fiscal implications of a potential deal is crucial.

Financial Due Diligence: Understanding the Bottom Line

Before closing a deal, it’s essential for potential buyers to understand the financial dynamics of the company they’re interested in acquiring. Financial due diligence involves analyzing a company’s income quality, cash flows, working capital, capital expenditures, employee liabilities, and net debt. By validating these assumptions, companies can reduce undesired surprises and increase the likelihood of a successful transaction.

Our Financial Due Diligence Services

Evaluating the price of the transaction
Assessing funding needs and commercial aspects
Analyzing income quality, cash flows, and drivers
Examining working capital, capital expenditures, employee liabilities, and net debt

Tributary/Fiscal Due Diligence: Navigating Tax Obligations

For buyers, tributary due diligence is critical in determining the past, current, and future tax liabilities of the company. This process helps establish the price of the purchase and identifies potential fiscal compensations included in the purchase agreement.

Our Tributary Due Diligence Services

Income tax
Profit tax
Capital gain tax
Value-added tax (VAT)
International transactions and transfer pricing

We also perform independent checkups to evaluate and inform about the fulfillment of formal and substantive obligations, policies, procedures, and tributary risk management.

Why Choose AFI for Due Diligence in El Salvador?

At AFI, we have extensive experience in providing due diligence services to companies looking to expand their operations or acquire new assets in El Salvador. Our team of experts will provide you with a comprehensive evaluation of your potential investment, helping you make informed decisions about your business.