• The Art of Legal Due Diligence
  • June 10, 2011 | Author: Alina Plyushch
  • Law Firm: Integrites International Law Firm - Kyiv (Kiev) Office
  • One of the most underestimated and time consuming parts of any acquisition is a due diligence process, which is either a purchaser¿s or vendor¿s investigation of a target¿s business (involving a company or group of companies) preceding an actual transaction and often consists of legal, tax and financial inter-related components. Legal due diligence (hereinafter ¿ ¿due diligence¿) encompasses procedures of complex legal review and analysis of a target (its corporate rights and/or owned assets) and aimed at identifying risks related to prospective transaction involving a target and its current legal status. Due diligence is designed as a formal process for a purchaser to discover and a vendor to disclose all material issues that may put a purchaser¿s investments at risk and potentially jeopardize accomplishment of the entire deal and typically commences upon signing of a confidentiality (non-disclosure) agreement.