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Publication date: 26.03.2025
Work experience as an economist, analyst in structured large-scale chemical production (chemical processing of diesel, quarry and mining ore extraction, magnesium electrolysis, polyethylene and vinyl chloride production) across 10 plants. Issues of cost formation and pricing policies. Experience in agricultural management (production, logistics, and processing of cereals), cadastral matters, land lease. Entrepreneurial experience in the jewelry business, producing, concert activities, film distribution, intellectual property rights distribution, creation of computer programs (maps, games) using satellite navigation systems, intellectual property rights protection, and organizing an online store. Certified Auditor, series A, Auditor Chamber of Ukraine. 10 years of experience in conducting and organizing audits for businesses of various ownership forms and activity sectors (trade, manufacturing, construction, agriculture, institutions, etc.). Teaching experience: economics teaching in technical colleges, conducting over 50 seminars on company organization, accounting, taxation, privatization, and teaching at KNEU on CRM and ERP system implementation. Organizing distance learning. Experience in analytical work for the specialized weekly "Galician Contracts." Expert knowledge and experience in accounting (NSBO, IFRS) and taxation, foreign economic activity (FEA). Experience in managing a budget institution (general and special state budget funds). Experience in establishing new companies and conducting the reorganization of existing ones. Implementation of accounting and organizational systems. Optimization of structure and production or business flows.
Confirmation of Transfer Balance in Business Purchase-Sale Transactions
The confirmation of the transfer balance is one of the key services provided by auditors during the acquisition or sale of a business. This service is highly popular among entrepreneurs as it helps assess the state of the business at the time of its transfer to the new owner, while maintaining all the benefits and supply conditions. It helps minimize risks when purchasing a business and assess the fair value of the enterprise.
Situation
Recently, there have been frequent transactions where entrepreneurs buy an existing business without changing the industry, main product range, or suppliers. In such cases, preparing the transfer balance becomes crucial as it helps preserve the current trade chains and supply terms. However, the process of preparing the balance requires thorough verification and an in-depth look at every aspect of the business.
Solution
- Business Condition Assessment: Auditors carefully analyze the financial and material assets of the company, examine its cash flows, liabilities, and contracts with suppliers and customers in order to prepare the transfer balance.
- Asset Inventory: It is important to conduct an inventory of business assets, check their turnover, and determine their fair value to ensure balance accuracy.
- Role and Timeframe Definition: Preparing the balance requires role distribution among departments and setting clear deadlines for task completion. This helps minimize time spent on the process.
- Document Preparation: After performing all checks, all documents must be properly prepared, including tax payments and contracts with counterparties.
Result
- Preparation for Negotiations: Based on the completed work, both the seller and buyer have a clear understanding of the business's financial condition, which allows for effective negotiations on price and terms of the sale.
- Price Analysis and Business Valuation: Valuation of all assets and liabilities allows the buyer to consider all relevant aspects when determining the business price.
- Risk Minimization: Preparing the transfer balance reduces risks for new owners by helping to prevent unexpected costs and preserve business stability.
Questions and Answers
Question
What documents need to be prepared to confirm the transfer balance?
Answer
To confirm the transfer balance, several documents need to be prepared, including:
- Financial reports of the company for the last period.
- Contracts with suppliers and customers.
- Inventory acts for property and assets.
- Tax returns and documents related to liabilities.
Question
How long does the preparation of the transfer balance take?
Answer
The preparation of the transfer balance depends on the size of the business and the complexity of the checks, but it typically takes from several weeks to a few months.
Why Choose Us?
- Professional Business Valuation: We provide accurate and objective evaluations of all your business assets.
- Maximum Transparency: We ensure full transparency throughout the process of preparing the transfer balance and supporting transactions.
- Risk Minimization: Professional assistance helps reduce risks associated with buying or selling a business.
Results of Our Work
- Accurate Business Valuation: Thanks to our detailed analysis, we helped determine the fair price of the company, taking all factors into account.
- Ensuring a Safe Transaction: Our professional support helped avoid legal and financial risks during the transaction.
Business Valuation
Legal Support of Transactions
Transaction Security
Confirming the transfer balance is an essential step for ensuring a successful transaction in the purchase or sale of a business. With our help, you will be able to make confident decisions regarding the price and terms of the transaction, minimizing risks and ensuring the security of your deal.
