Auditing Services

Our extensive experience in the auditing of annual financial statements enables us to provide other related services. Our interdisciplinary know-how and professional methodology and technology in problem solving characterize our services.

Our services include:

• Preparation of annual financial statements and consolidated financial statements
• Conversion to international accounting standards (IFRS and US-GAAP)
• Performing internal audits
• Designing/optimizing accounting processes
• Assessment and optimization of organizations, processes and systems, in particular from a risk perspective
• Damage prevention, damage determination (fraud investigation)

Corporate crises often represent the culmination of long-term processes of erosion. However, the unfolding of a crisis can be influenced by determined and targeted action. Along with years of experience in financial reorganization, Esche Schümann Commichau possesses the necessary expertise in crisis management and corporate financial rescue, including in the areas of corporate, employment, tax and insolvency law.

Our services include:

• Short-term stabilization in the midst of crisis and rebuilding trust with the company and stakeholders involved
• Identifying the causes of the crisis and designing financial, performance and strategic rescue measures
• Backing up these measures with a controllable implementation plan and an integrated draft audit of the plan
• Assuming project management duties, moderating control committees and bank pools
• Interim management Solutions

We support our clients both in structuring further growth and in coping with upheaval. The strategic alignment of all corporate functions to customers' and markets' requirements, the (re-)structuring of the internal organization and processes, and the implementation of stable balance sheet structures with an individual, tailor-made financing solution are the basis of lasting corporate success.

Our services include:

• Presentation of strategy workshops, development and anchoring of corporate objectives
• Analyses of strengths and weaknesses, market and competition analyses, market processing strategies
• Advising on the expansion/consolidation of service and holding portfolios
• Structuring of corporate succession
• Well-founded business analyses and, as needed, redesigning the business model, programs to increase efficiency and reduce costs, incl. employment law implementation in association with Esche Schümann Commichau
• Creation of a transparent system of control and reporting
• Determination of target and control variables, set-up and implementation of integrated financial planning, liquidity management, structuring of financing solutions, support in discussions with Banks

Providing business, legal and tax consulting services to our clients in corporate and real estate transactions is a focal point of the firm's work. As a result of our interdisciplinary structures, we can integrate the individual areas of expertise required for the task at hand to ensure an all-round consultancy service for our clients.

The team is equally active on behalf of national and international companies, banks and private equity companies, all of whom appreciate not only our independence, but also our membership in DFK International – a worldwide association of independent accounting and tax firms.

Our services include:

• Project structuring and support for corporate sales/purchases; taking over project direction
• Business, tax and legal preparation of the transaction and structuring of the agreement
• Financial due diligence, risk assessment and purchase price determination
• Consultancy in transaction financing
• Preparing informational memoranda and search for and addressing of interested parties
• Preparation and support for initial public offerings (IPOs)
• Consultancy/support in integration Management

In the capacity as neutral experts we perform business valuations predominantly on the basis of applicable provisions under the German Stock Corporation Act or Aktiengesetz (squeeze outs, conclusion of control and profit transfer agreements, audits of contributions in kind) as well as under the German Reorganization Act or Umwandlungsgesetz (merger audits). In these cases we act as court-appointed independent experts.

In addition, acting as advisors we perform business valuations for our clients.

Reasons for valuations include:

• Purchase and sale of companies or part of companies
• Valuations for accounting purposes (valuation certificates, purchase price allocations) pursuant to the German Commercial Code (Handelsgesetzbuch) or IFRS
• Initial public offerings (IPOs)
• Fairness opinions
• Changes in ownership
• Judicial and extrajudicial disputes (e.g. divorces, distributions of estates)
• Advice in relation to value-related strategic decisions

Conducting company valuations has become increasingly complex over the past few years. Aside from theoretical aspects of valuation, another good example of such complexity is the technical implementation of company-own budgetary accounting into a valuation model. In addition, statutory amendments as well as current case law require ongoing adjustments of the valuation methods used.

Owing to past reports and consultancy projects in this area, our team has the required relevant expertise and experience and actively supports current valuation approaches.

The interdisciplinary collaboration allows us to draw on the expertise and industry knowledge of other experts in our firm should the need arise. We adjust the nature and scope of our services and reporting to the individual requirements of each client and the reason for the valuation in each case.

Sustainability has long since ceased to be a niche topic and now affects all areas. As a result, calls from politicians and the general public are becoming louder to increase transparency in companies with regard to sustainability. It is expected that from the 2023 financial year, the reporting obligation will be extended for large corporations (500 employees or more) and that an integration of the non-financial statement into the management report and an audit of its content will be mandatory.

• Support for the preparation of the sustainability report
  • Analysis of the main sustainability issues
  • Selection of a suitable framework
  • Selection of suitable key performance indicators and reporting figures
• Audit of sustainability reports.