We conduct comprehensive legal audits of companies, enterprises, and investment projects in order to identify their potential risks and threats. The scope of a due diligence audit is determined in each case by the Client’s needs and takes into consideration the specific nature of the industry in which the analysed company is conducting business, as well as whether the audit is carried out for the seller, buyer or financing institution.
The scope of a due diligence audit covers, i.a., corporate issues, relations with related parties, trade agreements, employment matters, administrative matters, intellectual property rights, court proceedings. In the case of acquisition / sale of investment projects, we also closely examine legal title to the project and regulatory issues related to the activities of the project company. A detailed due diligence report is prepared following the legal audit, including the assessment of legal risk of an investment project or its individual components, as well as the recommended practical solutions for the effective acquisition or sale of the project.
The due diligence audit and report usually cover matters such as:
- general analysis of the legal status of a company and its related enterprises
- analysis of the company’s documentation (i.a. contracts, statutes, internal rules, resolutions)
- analysis of shareholding structure and equity relationships
- analysis of business documentation, contracts, general standard contracts
- analysis of the employee documentations i.a. regulations, collective agreements, internal policies, contracts of employment and management contracts
- analysis of the legal status of real property owned by the project company and any rights related to it
- analysis of patents, permits, arrangements and administrative decisions
- analysis of court and administrative proceedings in which the project company is one of the parties
- analysis of financial condition of the company including its financial statements, accounting records, public and private legal claims and liabilities,
- identification of potential legal and business risks for the company and members of the Board
- indication and recommendation of detailed solutions to improve and safeguard the company’s or project’s standing or situation