If you require assistance with the Due Diligence process, Blacks Solicitors’ Corporate team can help.
Due Diligence is an in-depth assessment of a business based on a number of questions and queries put to the seller in the form of a questionnaire. A report is then produced by the solicitors of a potential buyer of a business in order for the buyer to understand the assets, liabilities, and commercial prospects of the company and to satisfy themselves the price they are paying for the business is justified.
Due Diligence is fundamentally a process of risk management and sellers are under no obligation to disclose defects relating to the business. Buyers must always conduct their own investigation into the prospective business, however as part of the transaction process our Corporate team will ensure our clients are well protected with warranties, indemnities and covenants.
How we can help
Our expert Corporate team can assist you in preparing a detailed list of enquiries relating to your purchase – the Due Diligence Questionnaire. The Questionnaire will be tailored to the specifics of the business you are buying in order to ensure any potential risks are identified.
We can then prepare a Report in relation to the responses given which will help you make an informed decision about the purchase of the target business and the price you are paying for it.
Legal, commercial and financial due diligence of any target business is essential and we would work closely with you, your acquisition team, and your corporate finance advisers to ensure a thorough and complete due diligence exercise is undertaken in respect of the target business.
Frequently Asked Questions
What aspects of the business will the Due Diligence Questionnaire cover?
Each Questionnaire will be bespoke, depending on the nature of the deal. Some typical areas which are covered include:
- The officers/shareholders of the company
- The accounts/financials
- Major contracts with customers and/or suppliers
- Any group companies
- Computer systems (software and hardware)
- Intellectual Property
- Real Estate
- Consents and licences
How and in what form is the relevant information collected?
This is dependent on the type of deal and the extent of the enquiries made. Usually, the questions will be answered in writing in reply to the Questionnaire (i.e. the replies will correspond with the numbering of the questions on the Questionnaire).
Where an answer to a question requires documentation there are multiple options. The first is to input the documents into a virtual data room. This is usually the best option where there is a large volume of documents to be added. The second and more traditional option is to produce a hard copy bundle of documents. However email attachments can also be used to send over documentation.
For more information on the above, or to find out how Blacks’ Corporate team can assist you with the Due Diligence process, please email or call us today on 0113 207 0000.