The purpose of legal due diligence is to gain a legal perspective on the target company. As with any component of the DD process, the ultimate aim here is to ‘check under the hood’ and ensure that everything is in order. It provides comprehensive inquiry to a buyer with clear pictures of where their strategies and decisions are taking them or to put it simply – what it is they are buying.
Some of the item included in legal due diligence are :
- Copies of agreements or instruments that place restrictions or encumbrances on assets.
- Contracts that restrict the target's right to conduct its business.
- Contracts with obligations such as covenants and indemnification.
- Summary of the target's compliance program and copies of all policies, procedures and other related documentation.
- Our associate lawyers have a great experience of doing legal DD and ensure that all issues are identified appropriately, so that you can take an informed decision.