Legal Due Diligence

Usually a legal due diligence process has the purpose to analyze the main legal documents and information of a target company before the parties involved therein enter into transactions, such as mergers, acquisitions, issuance of new stock or other securities, project finance, securitization, etc.

The most important goal of a due diligence is to find out any liabilities, contingent or materialized, and so minimizing any risks that could result therein.

The due diligence could involve investigation into the business, tax, financial, accounting and legal aspects of a target company.

The legal due diligence mainly consists in the review of documents to identify potential legal issues that may present risks and/or impediments to the (i) transaction or (ii) in the general operations of the target, that could in a certain way affect the value or consideration in connection with the transaction.