Legal Due Diligence

Almost all the urgent problems occur because of a failure to timely determine and eliminate the relevant cause. The source of the major part of the risks is mismanagement of legal risks in the company. Clients’ indebtedness, claims from the regulators (including Tax Inspection), employment disputes, losses incurred due to suppliers, and corporate conflicts – all these events can either be averted, or at least their damage to your business and your nerves minimized.

Legal Due Diligence is a series of actions aimed at general assessment of legal risks of a company (project), and at formulating decisions on how the identified risks should be managed. The due diligence process involves not only reviewing documents, but also conducting interviews, and analysing the company’s business processes.

Which situations call for legal due diligence? As a general rule, it is required for acquisition of an existing business, and in the course of the investment process. We also recommend conducting due diligence before any massive expansion of business in order to secure your investments, and regularly, once in three years, to either identify and eliminate the new possible risks, or to revise approaches to the existing risks in case of a change of circumstances.

Based on the due diligence report you will be able to assess how efficient your legal support is, and how well your business is protected. Thus, you will know what will follow, and what actions should be taken.