Due diligence

Instrument used to improve the company’s safety, enabling determination of the current legal condition of an entrepreneur and elimination of legal risks connected with operation of a given entity on the market.

The essence of due diligence is to verify adopted practices, procedures and other internal documents in terms of their compliance with law. The scope of due diligence depends on the Client’s needs, plans and intended goal.

By relying on legal and tax criteria, we support our Clients in partial due diligence or entire business analysis which refers, among others, to:

  • Operation of an audited company and applicable legislation
  • Shareholding or partners
  • Means of operation
  • Commercial contracts
  • Given guarantees and suretyships, established mortgages
  • Relations with banks, incurred out-of-balance-sheet liabilities, indebtedness
  • Pending court disputes or settlements reached]

What benefits you can obtain from business legal due diligence:

  • Thorough, practical assessment of current activity enabling identification of any risk areas
  • Possibility of assessing the success and potential threats of planned transactions
  • Guidelines as to how apply effective solutions in terms of business effectiveness
  • Possibility of securing one’s property against potential effects of risk-burdened transaction
  • Additional legal protection

A measurable effect of legal due diligence is a detailed report which contains a description of the factual state, assessment of its compliance with law and recommendations on the basis of which the Client may take a well-thought and prudent decision as to whether implement the investment or conduct a recovery programme at the company.

Due diligence is recommended, among others, in the event of:

  • Intention to purchase an enterprise
  • Transformation of an entity
  • Implementation of the business development policy
  • Assumption of managerial functions by bodies in a new composition
  • Increased risk of inspection by state authorities at the company

As a Law and Tax Firm, we have considerable experience in carrying out due diligence – our experts have assessed legal and tax condition of the real estate (including real estate being monuments) and compliance of accounting practices of companies with commonly applicable rules of law. We verify commercial practices applied by our Clients on a case-by-case basis, analysing their compliance with provisions on competition and consumer protection and industrial and intellectual property protection.

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