Legal Due Diligence is a set of arrangements on collecting and analysis of true legal, tax, financial and any other sort of information on business, business assets and liabilities, that allow to release weak and strong aspects of a company/group of companies. Due Diligence represents a complete or selective legal examination of a company in various aspects of its activity. In most cases due diligence is carried out to check compliance of the company activity with regulatory acts in the fields of civil, corporate, tax, labor law, as well as in other aspects of the law.
Of particular interest is due diligence of commerce security of the company economic activity. Interest in due diligence is provoked first of all by its methodology. Initially, methods of due diligence were applied in mergers and acquisitions.
The main purpose of carrying out due diligence was to obtain information necessary for taking a final decision on the transaction, as well as to reveal legal and tax risks that the facility under check has at the time of carrying out works or that it might have in future.
However, high efficiency and exceptional benefits of the conclusions derived from due diligence has resulted in the fact that many companies of totally different level have started to carry out due diligence on a periodic basis to obtain complete and accurate information about the company.
Set of measures in the framework of Legal Due Diligence organized and carried out by «Brodsky Uskov Looper Reed & Partners» specialists includes:
- Study and analysis of an enterprise legal status;
- Analysis of audit opinions, audits, inspections carried out by competent state regulatory agencies;
- Analysis of legal structure of movable and immovable property;
- Overview of credit and debt operations of the company;
- Overview of the claims activity of the company;
- Review of licenses, certificates and other authorizations used in conducting financial and economic operational activities;
- Analysis of the legal status of the company industrial property subject matter;
- Analysis of a group of contracts used in the Client’s enterprise that set forth the major activities;
- Analysis of labour relations;
- Analysis of environmental and fire safety of the enterprises, as well as the way of protection of material values;
As a result, the analysis carried out makes it possible to draw up a report containing complete information on the company.
“Brodsky Uskov Looper Reed & Partners” company has proven legal techniques to carry out legal audit specially adapted to the Moldovan market.
At various times, on demand of both foreign investors, government agencies and local companies legal examination was carried out in various sectors of enterprises.
In 2010 the company carried out simultaneously Legal Due Diligence of the whole industry and of 9 largest factories in particular.