Due Diligence

Due Diligence is a procedure of formation an objective representation of the investment object (legal entity, property complex, etc.), including investment risks, independent assessment of the investment object, comprehensive study of the company’s activities, a comprehensive check of its financial condition and market position.

Our company offers several types of Due Diligence procedures: «Legal Due Diligence» and «Complex Due Diligence».

Due Diligence procedure is necessary:

  • in case you want to change the sole executive body of the legal entity;
  • in case of entering into the membership of participants (shareholders), acquisition of part or all of the business;
  • in case of acquisition of a property complex or complex object (land plot and other real estate objects);
  • in case of division of business, in case of adoption of such decision by participants/shareholders, including in cases of diversification of commercial risks.

Legal Due Diligence is a comprehensive audit to form an objective understanding of the legal correctness of the business model, the legitimacy of ownership and acquisition of its constituent assets, the presence/absence of risks of insolvency (bankruptcy), the presence/absence of overdue receivables/ payables, the risks of loss of ownership of significant assets of the company, etc. This analysis will effectively identify and show the best legal mechanisms for the implementation of your investment decision, emerging risks and ways to minimize them.

The procedure of Legal Due Diligence includes:

  • analysis of internal documentation of the company (group of companies) and its constituent documents;
  • identification of missing data (for example, entailing the risk of invalidation of the transaction) and development of appropriate recommendations for their inclusion;
  • legal analysis of the management structure, development of recommendations for its improvement;
  • analysis of the main (significant) for the company transactions for legality and compliance with all necessary procedures of their registration;
  • assessment of existing and possible corporate risks.