The term “legal due diligence” is understood as the evaluation, inspection, and review of the areas of the business to determine the current legal status of the business around issues of labour, operation, compliance with the law, and finance.
The terminology of “legal due diligence” has been appeared for a long time in the world and recently, it has been more and more popular and developed in Vietnam’s market, along with M&A transactions’ strong development by foreign investors.
Based on the legal due diligence report, the Investor will make appropriate decisions. With the benefits of legal due diligence as mentioned above, legal due diligence is necessary and important basis for implementing an M&A transaction. This makes top 5 notes for the firms considering the due diligence process.
5 Priorities About Legal Due Diligence For Your Business
The parties have exchanged, negotiated and agreed on a legal evaluation so that the purchaser decides to buy the company:
- Determine the purpose of the appraisal;
- Determine the areas to be appraised;
- Collect legal documents related to the area to be assessed.
- Search for lawyers specialising in the corporate legal evaluation and financial experts for financial legal due diligence;