Croatia’s Booming Business Scene Demands Due Diligence from Investors
As Croatia continues its upward trajectory within the European Union, a growing number of companies are emerging, making it increasingly important for investors to conduct thorough due diligence before entering into any financial agreements.
The Importance of Due Diligence in Croatia
Due diligence in Croatia involves an investigation and audit of a potential investment to confirm the financial and legal status of the business entity. It is crucial for investors to evaluate the economic risks associated with investing in a Croatian company.
Types of Due Diligence Available in Croatia
The Croatian Commercial Code outlines several types of due diligence that businessmen can utilize when considering investments in Croatia:
- Structuring advice
- Financial due diligence
- Purchase and sale agreements
- Market and commercial due diligence
- Real estate due diligence
- Post-deal due diligence
Conducting Company Due Diligence in Croatia
During the due diligence process, investors analyze annual reports, security and exchange commission filings, bookkeeping, and balance sheets to verify whether a potential investment aligns with their return requirements, risk tolerance, income needs, and assets allocation goals. Our lawyers in Croatia are well-equipped to provide extensive information on the procedures of company due diligence.
Steps Involved in Company Due Diligence in Croatia
Before purchasing a company in Croatia, investors should engage in thorough due diligence. This includes several steps:
- Analyzing Capitalization: Gathering information about the company’s size, market capitalization, and type of ownership.
- Checking Revenue and Profit Trends: Verifying annual reports and balance sheets to analyze revenue, profit, and margin trends.
- Evaluating Industry and Competitors: Analyzing the industry and competitors of the company.
- Gathering Share Ownership and Management Information: Accessing information about share ownership and management of the company through the Croatian Trade Register.
Expert Guidance for Entrepreneurs
For entrepreneurs looking to start a business in Croatia and require professional due diligence services, our attorneys are here to provide expert guidance.