{"id":2194,"date":"2026-03-27T20:35:11","date_gmt":"2026-03-27T16:35:11","guid":{"rendered":"https:\/\/ants.ge\/?p=2194"},"modified":"2026-03-30T16:18:29","modified_gmt":"2026-03-30T12:18:29","slug":"gel-100-million-transaction-in-the-georgian-market-and-ants-due-diligence","status":"publish","type":"post","link":"https:\/\/ants.ge\/en\/gel-100-million-transaction-in-the-georgian-market-and-ants-due-diligence\/","title":{"rendered":"GEL 100+ Million Transaction in the Georgian Market and Ants\u2019 Due Diligence"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Over the past six months, in September 2025 and January 2026, a Georgian real estate investment company acquired two shopping malls in Tbilisi. The total value of both transactions amounted to approximately GEL 102 million (approximately USD 38 million). Within the scope of both transactions, full financial and tax due diligence of the target companies was conducted by Ants.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In transactions of this scale, <a href=\"https:\/\/ants.ge\/en\/services\/due-diligence\/\">due diligence<\/a> represents one of the most critical stages, aimed at providing the investor with a comprehensive understanding of the company\u2019s actual financial position, profitability, debt levels, working capital requirements, and tax risks.<\/span><\/p>\n<h2><b>Scope of Work Performed by Ants<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As part of the transaction, Ants conducted full-scope financial and tax due diligence, covering the following key areas:<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Financial Due Diligence<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detailed analysis of the last 3 years\u2019 financial statements, management accounts, budgets, and operational data<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Quality of earnings analysis and EBITDA normalization, including separation of one-off and non-operating income and expenses, as well as margin analysis<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Testing of revenue recognition in accordance with IFRS 15 principles<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Calculation of net financial debt<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Analysis of cash, borrowings, leases, and other financial liabilities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Calculation of normalized working capital and analysis of the working capital cycle<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review of balance sheet items, including receivables collectability, inventory, provisions, and accounting estimates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identification of off-balance sheet and contingent liabilities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Analysis of cash flow generation capacity, capital expenditure requirements, and operational sustainability<\/span><\/span><\/li>\n<\/ul>\n<h3><\/h3>\n<p>&nbsp;<\/p>\n<h3><b>Tax Due Diligence<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review of compliance with corporate income tax, VAT, and payroll-related taxes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assessment of risks related to deemed (indirect) profit distributions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identification and quantification of tax risks and liabilities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Assessment of tax implications of the transaction<\/span><\/span><\/li>\n<\/ul>\n<h3><\/h3>\n<p>&nbsp;<\/p>\n<h3><b>Operational Review<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Analysis of the company\u2019s corporate structure, capital, shareholders, and compliance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review of key contracts (customers, suppliers, banks, leases), including change-of-control provisions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Management interviews and business model assessment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Analysis of customer concentration and key risks<\/span><\/span><\/li>\n<\/ul>\n<h2><\/h2>\n<p>&nbsp;<\/p>\n<h2><b>Transaction Support<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">During the due diligence process:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A report was prepared, identifying key risks and issues impacting the transaction<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Final financial and tax due diligence reports were prepared<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Due diligence findings were used to structure price adjustment mechanisms in the Share Purchase Agreement (SPA), including:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">EBITDA adjustments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Determination of net debt<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Working capital analysis<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Representations and warranties<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><\/h2>\n<p>&nbsp;<\/p>\n<h2><b>Importance of Due Diligence for Investors<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In large transactions, the primary objective of financial due diligence is to ensure that the investor clearly understands:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company\u2019s normalized EBITDA<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The actual level of debt (net debt)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The working capital required to operate the business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether there are tax risks or hidden liabilities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The sustainability of the company\u2019s cash flows<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These factors ultimately determine the final purchase price and transaction structure.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>Role of Ants in the Transactions<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In these transactions, Ants acted as the financial and tax advisor to the investor and was fully responsible for planning the due diligence process, requesting information, analyzing data, identifying risks, and preparing final reports.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ants\u2019 involvement in projects of this scale demonstrates the company\u2019s expertise in financial due diligence, tax due diligence, and financial advisory support in M&amp;A transactions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>About Ants<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Ants is a leading accounting, tax, and financial services company, serving more than 700 client companies on a daily basis. The company has been operating in the Georgian market for over 10 years and, in 2023, was named the winner of the country\u2019s largest business awards organized by TBC Bank in the nomination \u201cOutstanding Customer Experience.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to other services, Ants provides:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial due diligence<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax due diligence<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Quality of earnings analysis (EBITDA normalization)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Net debt and working capital analysis<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transaction advisory services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial modeling<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tax structuring of transactions<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The company serves both local and international investors and participates in M&amp;A transactions as a financial and tax advisor.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the past six months, in September 2025 and January 2026, a Georgian real estate investment company acquired two shopping malls in Tbilisi. The total value of both transactions amounted to approximately GEL 102 million (approximately USD 38 million). Within the scope of both transactions, full financial and tax due diligence of the target companies [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":2211,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GEL 100+ Million Transaction in the Georgian Market and Ants\u2019 Due Diligence - Accounting service<\/title>\n<meta name=\"description\" content=\"GEL 100M+ real estate deal in Georgia: Ants&#039; financial &amp; tax due diligence. 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