Audit

Article 727 of the Code of Obligations states that annual and consolidated financial statements must be subject to a regular audit when the company exceeds two out of the following three size criteria for two consecutive business years. On 17 June 2011, the Federal Parliament approved an amendment. Threshold values differentiating limited from regular audit are now the following:

• Turnover exceeding forty million francs for two consecutive years
• Balance exceeding twenty million francs for two consecutive years
• Workforce exceeding two hundred fifty full-time employees per year.

 Opting out

 When a company does not exceed two of the three aforementioned criteria, it may choose a limited audit.

In addition, a company that is subject to limited audit and which employs fewer than ten full-time employees may relinquish accounts audit, provided that all shareholders endorsed this decision. This option is called opting-out.

 Due diligence

 Offers to purchase a company or an asset usually depend on the results of due diligence analysis. This includes reviewing all financial records and anything else deemed material to the sale. Sellers can also perform a due diligence analysis on the buyer. Items that may be considered feature the buyer’s ability to purchase, as well as other items that would affect the purchased entity or the seller.

 During an acquisition, the traditional process is as follows:

• due diligence
• negotiations
• commitment
• closing

 Due diligence is a way of preventing unnecessary harm to either party involved in a transaction. Maximum Value helps you all along the way.