Whether you’re a buyer wondering about the acquisition process, or a business owner thinking of selling, we’re here to help!
While many questions can be answered with the help of the guides, sample letters and forms in our legal toolkit, an independent jurist affiliated with PSP Legal will always be happy to help you by answering any questions you may have.
Of course, if you prefer to have an experienced practitioner take charge of your situation and intervene directly and quickly on your behalf, you can also request that one of the independent jurists affiliated with PSP Legal represent you by clicking here.
What is due diligence?
Due diligence, or detailed verification of a company’s affairs, is the set of examination and investigation procedures carried out by experts commissioned by a potential investor to enable him to examine the information provided by the company and, by the same token, to base his judgment on its financial situation and future prospects. The exercise is not limited to legal, accounting and tax issues; it can also include an environmental, technical, scientific and commercial analysis of the company. In addition to the company’s financial results and assets, the audit may also look at the company’s markets, competitors or customer base.
Since the areas of activity that can be audited are almost limitless, the scope of the audit will depend on the type and size of business you wish to acquire.
Here are just a few of the things you need to check at this stage;
- All aspects of the company’s accounting and taxation, i.e. financial results, cash flow, loans and debts, tax returns, etc.
- The company’s assets and liabilities, such as inventory, share capital, real estate and furniture.
- The legal aspect: is the company the subject of one or more claims before the ordinary courts, or of penal or even criminal charges?
Due diligence is a crucial step in the acquisition of a business, and there are many benefits to be gained from it. Due diligence is not considered an audit in itself, but it does enable future buyers to be sure of the accuracy of the representations and warranties provided by the seller. Carried out rigorously and with the right objectives in mind, due diligence enables conscientious negotiation and the achievement of a fair transaction price.
How we can help
Our legal toolkit includes a variety of online resources and links to templates and guides to help you better understand your obligations.
However, should the Legal Toolkit prove insufficient in your situation, you can obtain additional assistance by speaking with one of PSP Legal’s affiliated jurists:
Of course, if you prefer to have an experienced practitioner handle your situation, you can always request that one of the independent jurists affiliated with PSP Legal intervene on your behalf by clicking here. He or she will then be able to intervene directly and rapidly on your behalf by:
- Preparing, negotiating and drafting applications, procedures or any other legal documents related to your situation;
- Assisting and advising you on your legal rights and obligations;
- Representing you before the courts when legal action is taken;
- Guiding you through the choices available to you, leading to a fair and satisfactory solution.
PSP Legal, because you deserve expert advice!
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