Due diligence (eng. due diligence) is a procedure for detailed verification of a future counterparty, legal and financial audit, which is carried out before signing a contract or buying a business.
It is also possible to quickly check the counterparty for reliability, with the provision of information
- about the organization or individual entrepreneur,
- powers of the director
- government contracts
- financial condition of financial statements
- and an analysis of legal processes involving the organization.
When conducting Due Diligence, our experts will analyze:
- the legitimacy of the organization, the powers of the governing bodies, the director with the study of constituent documents;
- the structure of the organization, including branches and representative offices;
- the legality of engaging in a certain type of activity (availability of licenses, permits, and other aspects);
- rights to real estate, including buildings and land;
- contracts and committed important transactions;
- regulation of labor relations with employees;
- accounts payable and receivable;
- claims and claims against the company;
- ongoing litigation in which the organization participates.
Following the results of the counterparty audit, you will receive complete and reliable information and make sure that:
at the conclusion of the contract:
- the contractor is trustworthy, has the right to engage in activities that interest you, does not have significant litigation;
when buying real estate, including buildings, structures and land:
- land plot allocated in compliance with all procedures, acquired by the seller lawfully, suitable for construction purposes;
- permitted use of land is suitable for construction purposes,
- there are no hidden communications on the land plot, as well as other obstacles for construction;
when buying a business:
- constituent and corporate documents, significant transactions, real estate rights are properly executed;
- the purchased company has all the necessary licenses and permits for conducting business;
- there are no complaints to the company from the state, municipal bodies and contractors, the history of litigation does not harm the reputation and does not contain the risk of bankruptcy.
As a result of legal expertise, you reduce legal and financial risks, get weighty arguments for successful negotiation and a detailed conclusion containing objective and complete information for evaluating the counterparty and making an informed decision.