Legal due diligence

In recent years, the term “Due diligence” has become very popular among local businessmen. This term came into business from banking practices and generally means a process of collecting and analyzing information on potential or existing customers and partners.

Currently the process of «Due Diligence» is mainly conducted before the purchase of a business, any M&A deals, or prior to concluding a major contract or cooperation with a company. Also, due diligence is often initiated by the shareholders (founders) wanting to get objective information about the risks in the company's business.

The main objective of a Legal Due Diligence is usually to obtain reliable and confirmed information by independent experts on corporate structure of a business and to avoid or minimize existing business

Types of Legal due diligence provided by Right Choice Law Company:

1. Full legal due diligence includes all of the types of legal audit and examination of the relationship with the budget listed below. The result is a report on the activities of the client for a specific period of time with a description of the possible risks and recommendations for their elimination;
2. Legal due diligence of the constituent documents of the client includes examination of constituent documents and their compliance with the law, especially the description of the significant terms of constituent documents, verification of payments of contributions to the charter capital, verification of compliance with the mandatory requirements of the competition law, compliance of the constituent documents to the changes that occurred in the organization, checking for reports of general meetings of the shareholders and other documents related to the founding of the company.
3. Legal due diligence of the contractual activity of the client includes a description and analysis of all the documentation that forms the totality of the contractual relationship of the Client, as well as analysis of the conclusion and execution of commercial contracts (including review of compliance procedures for conclusion of major contracts);
4. Legal due diligence of labor relations includes a legal analysis of all the documents constituting the human resources and labor relations of the Client;
5. Legal due diligence of the separate structural subdivisions (branches and representative offices) includes all the areas of audit, carried out by a separate structural subdivision of the Client;
6. Analysis of litigation activity of the Client involves identifying debtors and creditors organizations to study the state debt, the identification of measures taken to repay the debt, advice on repayment / debt collection;
7. Legal due diligence of the property rights of the Client includes the analysis of entitlement documents of the Client on the property belonging to him by right of ownership, identification of risks associated with improper registration of property rights and recommendations to address them.

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For more information, please contact: + 7 (727) 311 07 57, + 7 (727) 311 15 37

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