Due Diligence – is a legal and / or financial expertise, which gives an objective review about the subject of investment / purchase and sale (the estimation of investment risks). The procedure may include an assessment of all the possible legal risks (“pitfalls“), a comprehensive review of the financial condition and the market situation, an examination of personnel and contracts, both with personnel and with business partners, for the presence of risks, an examination of all documentation for the presence of errors, an examination of the committed and planned transactions etc.
The procedure is usually performed prior to a purchase of a business or investment, signing a long-term contracts or cooperation, as well as mergers and acquisitions.
Within the scope of the procedure are estimated all the pros and cons of the planned transaction. Such an expertise allows the customer:
– to avoid wrong decisions;
– to take into account the risks associated with the transaction;
– to get a source of information for the implementation of the initial steps for business development;
– to get means to protect its interests and those of its partners;
– for the seller to avoid claims because according to an expertise the buyer will be informed about all the major issues and not be able to refer to them upon presentation of claims or complaints.
One of the main issues to consider within the scope of the procedure are: long-term (major) contracts, real estate, insurance policies / guarantees, intellectual property and trade secrets, licenses and permits, liens, liabilities, financial, fiscal and technical statements, assets and investments, market research / reports on the products and so on.
The procedure is carried by attorneys, lawyers, consultants and financial experts who study the financial and legal affairs of the company, the availability of the necessary documentation, permits, analyze liability and the probability of occurrence of certain legal effects. It is a multi-level procedure that requires in-depth knowledge of the financial and legal aspects. As a rule, there are two types of procedure: Financial and legal due diligence, however, there are also other kinds of services related to the passage of the due diligence, for example, assistance in preparing the necessary information and analysis of the requirements of the other party, including in the banking sector.
Within the scope of the procedure, we will identify and highlight in summary form those issues, which we feel are of particular significance in the context of the transaction.
The recommendations given by our experts within the scope of the preparation of a legal expertise are an excellent source of information for a client, concise and clear conclusions given by us during the due diligence may be crucial for making the right decision.
Experts responsible for provision of this service: