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Use of Analysis and Control Methods in Due Diligence
Kopotiienko T. Y., Pavlov V. V., Shyrchenko B. S., Lysyi V. I.

Kopotiienko, Tetiana Yu. et al. (2024) “Use of Analysis and Control Methods in Due Diligence.” Business Inform 5:243–251.
https://doi.org/10.32983/2222-4459-2024-5-243-251

Section: Accounting and Auditing

UDC 657.6:005.52

Abstract:
Intensification of market processes in the part of attracting foreign investment, conducting mergers and acquisitions (M&A), restructuring of enterprises and expansion of their activities determines the importance of providing potential investors with high-quality information support for making strategic managerial decisions. A contemporary instrument for a comprehensive due diligence of the company’s activities is the audit service of «due diligence». The absent standardization and the lack of legal regulation of due diligence necessitated the improvement of the methodological instruments of this service. Based on this, it is expedient to use modern methods of analysis and control, which will allow not only to assess risks, but also to take preventive measures to minimize them. The aim of the article is to substantiate the content of «due diligence» and improve the methodological instruments by providing recommendations on the use of methods of analysis and control. The information basis of the present research is the normative legal acts of Ukraine on audit and accounting, scientific publications of scholars. The article applies general scientific and special research methods: induction, deduction, analysis, synthesis, horizontal analysis, comparison, and others. Due diligence – as a process of comprehensive preinvestment study – is a crucial element for successful risk management and achieving positive results from concluding an agreement. The dynamics of M&A transactions over the past decades in the world, as well as the structure of the largest contracts in Ukraine over the past year, are researched. Proposals for improving the methodological support for conducting the main types of due diligence based on the use of methods of analysis and control have been developed.

Keywords: due diligence, audit services, M&A transactions, investments, methods of analysis, methods of control.

Fig.: 2. Tabl.: 2. Bibl.: 12.

Kopotiienko Tetiana Yu. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Financial Analysis and Audit, State University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]
Pavlov Vladyslav V. – Doctor of Sciences (Economics), Associate Professor, Professor, Department of Management, Finance and Business Administration, International European University (42 Akademika Hlushkova Ave., Kyiv, 03187, Ukraine)
Email: [email protected]
Shyrchenko Bohdana S. – Student, State University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]
Lysyi Vitalii I. – Student, State University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]

List of references in article

[Legal Act of Ukraine] (2017). https://zakon.rada.gov.ua/laws/show/2258-19#Text
[Legal Act of Ukraine] (1999). https://zakon.rada.gov.ua/laws/show/z0499-99#Text
Kostinska, V. M. “Diu dilidzhens zlyttia ta pohlynannia pidpryiemstv u voiennyi chas“ [Due Diligence of Mergers and Acquisitions in Wartime]. Molodyi vchenyi, no. 2 (2023): 102-107. DOI: https://doi.org/10.32839/2304-5809/2023-2-114-20
Holovatska, S. I., and Kurak, A. I. “Zabezpechennia maibutnikh vytrat i platezhiv u protsesakh «diu dilidzhens» ta upravlinnia ryzykamy pidpryiemstva“ [Provision of Future Expenses and Payments in the Processes of «Due Diligence» and of Risks Management of Enterprise]. Biznes Inform, no. 3 (2019): 394-398. DOI: https://doi.org/10.32983/2222-4459-2019-3-394-398
Datsenko, H. V. “Upravlinnia ryzykamy pry provedenni vnutrishnyoho audytu na pidpryiemstvi“ [Risk Management in Internal Audit at the Enterprise]. Investytsii: praktyka ta dosvid, no. 1 (2021): 5-10. DOI: https://doi.org/10.32702/2306-6814.2021.1.5
Hutsalenko, L. V. “Diu dilidzhens - harant uspishnosti investytsiinoho proektu v biznes-sferi“ [Due Diligence Is a Guarantor of the Success of an Investment Project in the Business Sphere]. Ekonomika. Finansy. Menedzhment: aktualni pytannia nauky i praktyky. 2017. http://surl.li/tmznq
Nazarenko, I. M., and Oriekhova, A. I. “«Diu dilidzhens»: sutnist, pryznachennia ta poslidovnist provedennia“ [«Due diligence»: Essence, Appointment аnd Sequence of Realization]. Naukovi pratsi Kirovohradskoho natsionalnoho tekhnichnoho universytetu. Seriia «Ekonomichni nauky». 2011. https://dspace.kntu.kr.ua/server/api/core/bitstreams/22fc8c93-c80c-4275-b7e1-612ad6f8f7c7/content
“Kompaniia «Deloit» v Ukraini“ ["Deloitte" Company in Ukraine]. Deloitte. https://www2.deloitte.com/ua/uk.html
“Uhody zlyttia ta pohlynannia M&A v Ukraini“ [M&A Merger and Acquisition Agreements in Ukraine]. InVenture. January 10, 2024. https://inventure.com.ua/uk/tools/database/ugodi-zlittya-ta-poglinannya-manda-v-ukrayini
“Global M&A Activity Will Slow in 2023“. Beinsure. https://beinsure.com/2023-ma-activity-slows/
“M&A statistics by industries“. IMAA (Institute for Mergers, Acquisitions, and Alliances). https://imaa-institute.org/mergers-and-acquisitions-statistics/ma-statistics-by-industries/
“Due Diligence iak vazhlyvyi etap uhody“ [Due Diligence as an Important Stage of the Deal]. EBA (European Business Association). March 03, 2023. https://eba.com.ua/due-diligence-yak-vazhlyvyj-etap-ugody/

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