Due diligence

Due diligence – is a checkout of the "proper conscientiousness", which is the collection and analysis of the information about the object of purchase (investment) or subject of business activity with which the deal is supposed to be concluded.

During the Due diligence procedure constituent and internal documents of the enterprise interested are to be examined, namely its right to property, debt liability, licenses, financial and tax reports, as well as rules and procedures, which govern its operations, structures and schemes of control (management) and marketing policy.

Aims: determination of the actual economic condition and reliability of the examinated enterprise, possible optimization of its business processes in the case of a transaction, definition of fair value of holdings and/or amount of credit debt, identification of legal, financial or reputation risks of the proposed transaction.

Our experts do not only give the conclusion on the existing problems, but also develop specific recommendations for rehabilitation and legal and financial planning business of the object being analysed – to minimize potential losses and to rise economic efficiency of the investments.


Why must due diligence procedure be charged to the professionals?

If the object of a potential investment is a company, Due diligence tools are multi-level checkouts of its activity: financial, economic, legal, technological, and sometimes staff. It is necessary to mention that the efficiency of such checks and the reliability of its results directly depend on the completeness or timeliness of the information.

The main costs of information and analysis work are related with:

- the search and presentation of the information;

- processing of received information (analysis).

Certainly, the potential investor can look for information about the object by himself: about the presence of claim and associated economic and legal risks. For example, public and open to everyone data are information about the trials with the participation of enterprises, information about the held court decisions; to get the information it is enough to track the sites of the arbitration courts. Additional sources to get the information are bases of legal systems, mass-media publishing, messages in the "profiled" oriented Internet forums.

Such work can be charged to the staff lawyer of the investor without the involvement of external analyst. In the condition of knowledge about the obligation of assets, about the variety of court appeals involving the company, the investor can decide to refuse the deal without any additional help.

However, all the information is not available to the investor, that is why in the cases of preparation for complex and expensive deals, prior appeal to external experts becomes almost an obligatory stage of preparation for a final decision.

At the stage of information processing one must remember that the wish to save money should not prevail over the reasonable care of the investor. For the "misers pay twice". To have the assurance in the "purity" of the future deal, a deep legal analysis, as well as financial and economic expertise of the object should be obliged to the professional analysts.

If the investor has a professional specialist in the staff, the work may be entrusted to him. However, external consultants have considerable experience in a similar research and will help to maximize the identity of all the possible risks, including those which were not determined nor by the potential investor nor by its specialists.


We will help you to make the right decision in the most dangerous and challenging situation!




Legal support of transactions with land, immovables, including investment in building of real estate