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.