Viktor Nevmerzhitsky
Tax Partner
Legal Due Diligence is a service that can secure you from possible mistakes in doing business.
Legal Due Diligence (LDD) is a legal expertise of documents and information focused on a comprehensive review of the company's activities and assets.
When is a legal due diligence (LDD) required?
Legal audit can be complex and targeted.
Complex legal Due Diligence is mostly required when:
1) Buying assets
Due to purchase of assets, it is important to thoroughly examine the seller's rights to such assets, to assess the risk of claims or lawsuits in relation to such assets, and to check that all necessary permits are available.
2) Selling or buying a business through a merger, acquisition or partnership
In case of mergers and acquisitions (M&A), it is necessary to carry out a more detailed legal due diligence, since such a transaction required to verify even more information.
3) Verification by top management or parent company of the current position of the company (as part of Vendor Due Diligence)
Internal legal DD, properly conducted by experts, provides a justified objective assessment of the asset's state, including recommendations on behalf of the company and its owners. This allows you to analyze business, correct mistakes and, having done your "homework", enter the investment market as prepared as possible.
Read more about Due Diligence types of services provided by BDO in Ukraine
What can be checked during detailed Legal Due Diligence?
- Company's structure and authority of subsidiaries
- Distribution of dividends and property of the company
- Procedure for the issue of shares
- Intellectual property of the company
- Registration of rights to real estate
- Compliance with labor laws
- Agreements with suppliers and sales issues
- Availability of permits related to rights for mining, construction and other permitting procedures
Documents verified during Legal Due Diligence
There are many types of documents reviewed during legal audit. They provide information about the company and its current activities. Below are examples from the list of such documents, as well as information that may be requested for verification.
Based on years of experience, BDO in Ukraine experts select the most effective procedures for each specific case, based on the specifics of the business and the specified goals.
To order a consultation and clarify the cost of Legal Due Diligence service for business, please contact experts of BDO in Ukraine.
