Due Diligence

Due Diligence is literally translated as "good business practice".

This is what we check if you intend to acquire assets, invest in an existing business, buy a company or sell it.

When is this required?

  • When buying assets:
    • all the assets which you intend to acquire really exist, belong to the seller and are not encumbered with the rights of third parties;
  • In real estate and land transactions:
    • the land plot on which you plan to construct an object has been properly allocated, so its permitted use will enable you to construct the planned facility without hindrance; there are no hidden utilities on the territory of future construction, or other obstacles impeding realization of the project;
    • the title to real estate and other assets is authentic, and there are no risks of their sudden loss.
  • When buying a company or existing business:
    • the company you are going to buy has all necessary licenses and permits to engage in the relevant type of activity;
    • the bookkeeping and tax accounting in the company has been maintained as proper, and there are no risks of claims on the part of tax authorities;
    • there are no violations of any kind in the company’s activities that might entail administrative or criminal liability.
  • As a result of legal examination, you obtain:
    • objective data for decision making, ensuring reduction of risks of financial losses;
    • strengthening your bargaining position and cost economy.

As part of Due Diligence, our experts make research and analysis of the following aspects:

  • procedures for institution of a company, drawing up constituent and local deeds of the company;
  • corporate structure of the business, including branches and representative offices;
  • title to the real estate, including land;
  • title to the movable property which, if absent, would hamper the  company’s activities;
  • title to the stock and/or shares of other business entities;
  • title to the intangible assets of the company;
  • foreign economic activity of the company;
  • contractual work of the company;
  • labour relations in the company;
  • the company's rights to engage in certain activity;
  • accounts payable and receivable
  • claims lodged against the company by third parties;
  • financial, accounting and tax reporting;
  • litigation in which the company is involved.

The result of Due Diligence is a detailed conclusion containing a description of the state of business or an object, with a list of existing risks with recommendations for minimizing them, namely:

  • omplete and exhaustive information that allows you to make a decision on entering into a transaction or withdrawing from it;
  • a possibility to adjust the transaction price in your favour on the basis of identified risks;
  • a possibility to eliminate the identified risks before entering into the transaction.

Our strengths have already been taken advantage of by: