Audits which are conducted internally to ensure that the company is ready to go into sale are termed as due diligence audits.
There are few steps involved in due diligence legal audits :
• Legal Due diligence.
• Operational Due Diligence.
• Financial Due diligence.
• HR due diligence.
• Tax due diligence.
WHY IS DUE DILIGENCE IMPORTANT?
• In case of a transaction, if something gets missed during execution phase, due diligence audit will most likely bring it back into the spotlight.
• Quality of information is enhanced and ensured.
• A transaction backed by due diligence audit has a much higher probability of being successfully executed.
• A due diligence audit based on buyer and seller’s perspective ensure that the end result will be in the favorable conditions only.
DOCUMENT REVIEW AND ANALYSIS
Consultants review and analyze the target company's legal documents, including contracts, agreements, leases, licenses, and permits. They assess the terms, conditions, and obligations contained in these documents to identify potential risks and liabilities. Consultants pay particular attention to key provisions, such as change-of-control clauses, termination provisions, indemnification clauses, and limitations of liability.
Consultants evaluate the target company's compliance with relevant laws, regulations, and industry standards. They review policies, procedures, and internal controls to assess the company's adherence to legal requirements. Consultants identify any compliance deficiencies, potential violations, or areas of non-compliance that may pose risks or impact the success of the M&A transaction.
LITIGATION AND REGULATORY RISK ANALYSIS
Consultants conduct a thorough analysis of the target company's litigation history and regulatory interactions. They review ongoing legal proceedings, past lawsuits, regulatory investigations, and compliance audits. Consultants identify potential legal risks, assess the financial impact of existing or potential liabilities, and provide insights into the company's exposure to legal disputes or regulatory penalties.
INTELLECTUAL PROPERTY ASSESSMENT
Consultants evaluate the target company's intellectual property (IP) portfolio, including patents, trademarks, copyrights, and trade secrets. They assess the ownership, validity, and enforceability of these assets, as well as any potential infringement risks. Consultants may collaborate with IP specialists to conduct in-depth IP audits and provide recommendations for protecting and leveraging the target company's IP assets.
EMPLOYEE AND LABOR ISSUES
Consultants review the target company's employment contracts, employee handbooks, labor union agreements, and other labor-related documents. They assess compliance with employment laws, worker classifications, and potential labor disputes. Consultants identify any significant employee-related risks, such as pending litigation, labor strikes, or non-compliance with labor regulations.
ENVIRONMENTAL AND REGULATORY COMPLIANCE
Consultants assess the target company's environmental practices and compliance with environmental regulations. They review permits, environmental impact assessments, and compliance records. Consultants identify any environmental liabilities, potential violations, or risks related to the target company's operations, facilities, or products.
REPORTING AND DISCLOSURE REQUIREMENTS
Consultants ensure that the target company complies with reporting and disclosure requirements imposed by regulatory bodies or stock exchanges. They review financial statements, public filings, and disclosures made to shareholders and investors. Consultants identify any material omissions or misstatements that may impact the M&A transaction or raise concerns for the acquiring company.
RISK ASSESSMENT AND REPORTING
Consultants provide a comprehensive risk assessment report that outlines the identified legal risks, liabilities, and compliance deficiencies. The report highlights the potential impact of these risks on the M&A transaction and offers recommendations for risk mitigation. Consultants assist the acquiring company in understanding the legal implications and structuring the deal accordingly.
Our goal is to enable our client’s businesses and organizations involved in M&A transactions to assess the legal risks and liabilities associated with the targeted company. Our services vary based on the expertise, the nature of the M&A transaction, and the specific legal and regulatory landscape in which the target company operates.
Why Choose Us?
1. Highly Experienced Law professionals in amalgamation with diversified teams with strong technical backgrounds in various fields.
2. Our Prices are Highly competitive.
3. We are discreet and deliver on time.
4. Your privacy is our responsibility.
5. We keep you in the loop all the way.
6. Our teams don’t break a sweat, no matter how much volume of work you throw towards our side.
To know more about our services, contact us “firstname.lastname@example.org” or give us a call at “+1 307-227-8788”. We will get back to you at the earliest.