2023, Vol. 10, No. 1. - go to content...

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DOI: 10.15862/56ECOR123 (https://doi.org/10.15862/56ECOR123)

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Adilov A.N. Due diligence procedure as a tool for comprehensive verification of an investment object. Russian journal of resources, conservation and recycling. 2023; 10(1). Available at: https://resources.today/PDF/56ECOR123.pdf (in Russian). DOI: 10.15862/56ECOR123

Due diligence procedure as a tool for comprehensive verification of an investment object

Adilov Abdulmanap Nukhbekovich
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: manap.adilov2001@mail.ru

Academic adviser: Botasheva Lyudmila Khasanovna
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: LHBotasheva@fa.ru

Abstract. Within the framework of the presented work, the author investigates the features of the due diligence procedure. In addition, this procedure is considered in the article from the point of view of a tool for a comprehensive check of the investment object. The author notes that despite the fact that abroad the practice of applying the due diligence procedure has been carried out for a relatively long time, in Russia its application began only during the period of economic recovery after the global financial crisis. To date, both in the world and in the Russian educational, methodological and scientific literature, a unified approach to the essence of the due diligence procedure has not been formed. In this regard, the article examines various approaches of domestic authors to the definition of the due diligence procedure. Conducting a particular analysis as part of due diligence will depend on the specifics of the company’s activities and the goals of the audit. However, the author focuses on the fact that the greatest effect is achieved with a complex procedure. Timely and complete verification of a business partner through the use of due diligence helps the company minimize the risk of unreliability of the counterparty. Further, the author proceeds to consider the features of the implementation of the due diligence procedure on the example of the timber processing industry. He argues that the wood processing enterprises themselves bear the responsibility in case of a risk of cooperation with an unreliable business partner. Due to the fact that timber processing companies have a developed export potential, partnership is carried out not only at the state, but also at the international level, and, therefore, it is necessary to check the reliability of foreign and separately Russian counterparties. In the final part of the article, the author formulates a conclusion regarding the role of due diligence in ensuring the proper level of economic efficiency.

Keywords: counterparties; due diligence; timber industry; investment; investment attractiveness; analysis of the company’s activities; risks

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