Due Diligence is a procedure for forming an objective view of the investment target, aimed at its comprehensive background check and obtaining an independent assessment.
Such procedure is usually conducted prior to purchase of the business or a merger and acquisition transaction, signing of a contract or cooperation with a company.
As part of Due Diligence, the following risks can be identified and assessed:
- Risks related to corporate structure;
- Risks of overstated book value of the assets;
- Legal and tax risks;
- Risks of losing assets and risks of being held accountable for various kinds of matters;
- Risks connected with labor disputes.
Due Diligence procedure conducted by the specialists of Inmar Legal Ltd includes both a comprehensive and random check of:
- Establishing a company in a proper way;
- Proper issue of shares or formation of the company’s authorized capital;
- The rights of the seller for the stock (shares), encumbrance of stock (shares);
- Composition of shareholders (participants) of the company, the agreements reached between them;
- Management affairs in the company, as well as the structure of the company being purchased;
- The company’s stake in other companies;
- The company’s right of ownership for assets: real estate, movable property;
- Intellectual property rights of a company, trademarks, patents, etc.;
- Availability of licenses/permissions for carrying out activities by a company;
- The customer base of a company (in particular, material and long-term contracts);
- The main liabilities of the company;
- The amounts due to the company from third parties;
- Employment relations matters in the company (including labor contracts of the company and contracts with the top management personnel);
- Environment protection issues related to the company;
- Court proceedings, in which the company is involved, as well as control over the company exercised by government bodies.
The specialists of Inmar Legal Ltd are not limited by the territorial boundaries of the company’s place of registration or actual location of the company’s assets, relative to which it is required to conduct Due Diligence. We render services on checking the entities located in any part of the Russian Federation and abroad, with the assistance of our partners.
The outcome of Due Diligence is a report, containing a description of the business or entity status and a weighted assessment of legal risks accompanied by recommendations for their minimization.
Due Diligence conducted by our specialists will make it possible for you to get an exhaustive and reliable information about the commercial attractiveness of the contemplated transaction or investment project.