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Legal Due Diligence Service

Get Legalised Due Diligence Service by THE STARTUP GIG

Overview of Legal Due Diligence Service

Legal Due Diligence is typically performed when a person wishes to buy or sell a business. It is sometimes done on purpose as a routine check of the Company’s legal affairs. Legal Due Diligence entails an examination of all, or specific parts of, the target Company’s legal affairs to identify any legal risks and provide the buyer with a comprehensive understanding of the Company’s legal affairs. While conducting Legal Due Diligence, the buyer’s bargaining position improves, and this leads to the assurance that necessary precautions are taken regarding the business to be entered.
legal due diligence

Why choose The Startup Gig For Legal Due Diligence Service

planning

Preparation

The legal due diligence, is due diligence concerned with the legal matters of a company, business deal or agreement, or a financial transaction, for making it optimally safe, secure, privileged, and profitable legally and otherwise.

evaluation

We Evaluate The Deal And Identify Potential Risks

We assist in making a comprehensive evaluation of all possible legal risks related with the company status, assets, securities, contracts and leases, debts, intellectual property, market/commercial situations, pending and potential lawsuits, customer and distribution agreements, employment contracts, compensation arrangements, and many more things of the target company.

project-management

Customized Legal Due Diligence Services

We provide reliable, ingenious, and CUSTOMIZED legal due diligence services to individuals, companies, corporations, and organizations worldwide in the following areas.

What Are the Subjects of Legal Due Diligence?

When conducted in a company, the legal due diligence process looks into the following areas:

  • Intellectual Property

Patents, trademarks, trade secrets, and copyright are all examples of intellectual property. The target company’s intellectual property licences, contracts, and pending litigation are examined. 

  • Corporate and Legal Structure

The acquirer should be familiar with the Target Company’s organisational structure. The Memorandum of Association (MoA) and Articles of Association (AoA) are examined to obtain information about the Target Company’s Corporate and Legal Structure.

  • Commercial Contracts

Target Company’s commercial contracts are examined to identify the risks associated with these contracts. Commercial contracts include vendor agreements, service agreements, rental agreements, and so on.

  • Employee Contracts

The Employee Contracts of the Target Company are analysed to understand the risks and liabilities to the employees. Wages and salaries, employment terms, employment duration, pension plans, and other details are all included in employee contracts.

  • Tax Liability

A Target Company’s deferred tax liabilities are examined to identify any discrepancies. If there is any liability for tax liabilities, the acquirer will face enormous liabilities in the future.

  • Regulatory Compliance

The target company should do everything in its power to follow the law and maintain regulatory compliance.

  • Litigations

The Target Company’s Litigations, whether past or present, are investigated. Future litigation is also being investigated to avoid future problems. Employees, customers, vendors, and the government can all bring lawsuits.

  • Health and Safety Standards

Target Company’s compliance with its Health and Safety Standards is audited. Nowadays, workplaces should be safe places to work. Employees are more concerned about their well-being. The Target Company’s office should be checked for safety equipment and proper ventilation.

  • Environment Laws

Compliance with environmental laws is now a critical issue. The acquirer should investigate any issues concerning noncompliance with environmental laws.

What Are the Benefits of Conducting Legal Due Diligence?

The following are the primary benefits of legal due diligence:

Recognize the Target Company

Whenever the Company conducts Due Diligence, all legal documents are scrutinised. Before making a purchase, this allows you to better understand the target company and its operations.

Aids in determining a reasonable price.

The acquirer learns about all of the Target Company’s pending litigation, employee factors, labour agreements, intellectual property details, and so on while analysing the Target Company’s structural, financial, and operational aspects. This analysis provides the acquirer with a solid foundation for negotiating with the target company. As a result, the acquirer will be able to set a reasonable price.

Identification of Potential Legal Risks

The target company’s pending litigation will be a major issue for the acquirer. These lawsuits will reduce the value of the target company following the acquirer’s takeover. The process will assist in identifying and eliminating future risks today.

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