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.