Acquiring or selling a business, or attracting investment, is a significant strategic decision that requires more than financial analysis alone. It is important to understand the business as a whole, assess its growth potential and identify factors that may affect its value, risk profile and transaction terms.

Due diligence provides an independent and structured assessment of a business, helping to identify key risks, opportunities and other factors that may affect the outcome of an investment or transaction.

How can KPMG help?

KPMG in the Baltics brings together specialists across a range of disciplines with more than ten years of experience in M&A transactions. We take an integrated approach to due diligence, covering financial, tax, legal, commercial, technology and ESG matters. This provides a comprehensive view of the transaction and helps focus on the issues that matter most when making decisions, determining the purchase price and negotiating the terms of the share purchase agreement (SPA).

Depending on the transaction and the client’s needs, KPMG can help to:

analyse and structure relevant transaction information;
assess the quality of earnings (EBITDA), net debt (ND) and net working capital (NWC), including identifying appropriate normalisation adjustments;
identify and quantify potential risks and value creation opportunities;
provide recommendations to support transaction negotiations and the formulation of transaction terms;
assess ESG and sustainability considerations;
identify matters that may affect the value of the business or the successful completion of the transaction.

The scope of due diligence is tailored to the transaction objectives, industry, available data and the client’s specific needs.

Our Transactions

Škoda Group (2026) Škoda Group, one of Europe’s leading manufacturers of rail and urban transport solutions, has acquired a 36% stake in SIA L-Ekspresis. KPMG in Latvia acted as the buyer’s advisor, providing financial and tax due diligence services. Read more about the transaction here.

Van Egmond Group (2026)
Dutch family-owned company Van Egmond Group has acquired 100% of the shares in SIA Unguri. KPMG in Latvia acted as the buyer’s advisor, providing financial, tax and legal due diligence, as well as legal support in structuring and completing the transaction. Read more about the transaction here.

Latvenergo (2025) AS Latvenergo acquired the "Pienava" project from Swedish renewable energy developer Eolus, currently the largest wind farm project in Latvia. The KPMG in Latvia team provided financial and tax due diligence and valuation services in connection with the acquisition.

Latvenergo (2024) With the support of KPMG in Latvia, AS Latvenergo signed an agreement with Danish green energy developer Danish Sun Energy ApS to acquire 100% of the shares in SIA DSE Aizpute Solar, with the aim of developing a solar power plant with a total capacity of 265 MWp (megawatt-peak) by the end of 2025.

Frequently asked questions

When should due diligence be carried out?

Due diligence is typically carried out before an acquisition, investment, merger or other strategic transaction. It helps identify potential risks at an early stage, assess factors that may affect the value of the business and provide a sound basis for informed decision-making.

What information is required for due diligence?

The information required depends on the purpose and scope of the review. It typically includes financial statements, management reports, tax information, key contracts, operational performance data, business plans, employee-related information and other information relevant to the transaction.

What is the difference between buyer and vendor due diligence?

Buyer due diligence helps a potential buyer assess a company’s operations, financial position and key risks before completing a transaction. Vendor due diligence enables business owners to identify potential issues in advance, prepare relevant information for prospective buyers and support a more efficient sale process.

What is the outcome of due diligence?

The client receives a structured report outlining the key risks, opportunities and other matters that may affect the value of the business, transaction structure or transaction terms.