D. R. K., New Business Operator, Worcester
Business & Commercial Due Diligence Solicitors
Due diligence is the process of auditing and investigating a business that a buyer wishes to acquire. This will include a review of all commercial aspects of the business to ensure that the buyer understands the business and the risks that may be associated with it. Due the higher level of risk involved with a share purchase there will often be a greater level of due diligence carried out than would be expected for an asset purchase.
The process will usually cover:
- Ownership & structure of the business
- Financial performance & forecasts
- Statutory compliance
- Liabilities
- Contractual agreements with suppliers & customers
- Employees
- Property
- Intellectual Property
The due diligence process can assist in identifying issues that the buyer would need to protect against. Depending on the severity of potential problems there are a range of methods that the buyer can use to protect themselves. Warranties can be included in the sale and purchase agreement, indemnities can be given against specific potential liabilities and the offer price can be reduced or even withdrawn if the risks are perceived to be too great.
Our business lawyers can advise and undertake an appropriate due diligence process for potential buyers and also assist sellers in responding to due diligence queries.
Call Business Lawyers Direct today on or contact us via our online enquiry form and one of our senior solicitors will be pleased to discuss your requirements.