Legal due diligence, an extensive process, is a crucial part of any proposed transaction. If done properly, the review will provide essential information to further a transaction process. Performing legal due diligence may save tremendous costs after a transaction’s completion.
Legal Due Diligence: Objectives
Lawyers in UAE perform legal due diligence in order to:
- Assess main legal risks;
- Reveal hidden legal risks;
- Offer solutions or alternatives to reduce legal risks identified;
- Get a full understanding of a company’s contractual domain (contracts and their quality);
- Understand employment conditions, as well as the obligations of an Entity to its employees;
- Serve as basis for a deal’s structure;
- Check possible legal deal breakers and come up with solutions in dealing with them;
- Enforcement of indemnities – give advice during post-deal phase
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Primary Uses of Legal Due Diligence
Typically, one company performs legal due diligence on another company; however, it can be utilized to investigate your own business as well. It’s particularly helpful if you’re considering a merger or major sale as it will give you a more in-depth understanding of your company’s overall worth. A legal due diligence process also helps a buyer understand a target business, including all its agreements.
Aid in determining target company’s value
Just like how it helps you determine your company’s value; legal due diligence will also give you a much clearer picture of another company’s worth. This value can be understood via information on agreements, assets, and potential problems of the company. Take note that the value of a company that’s being acquired or merged can’t be understood without determining relevant legal issues that are under consideration, making a legal due diligence process all the more necessary.
Drafting and/or review of relevant documents
Any information that’s learned through a legal due diligence process is essential in the drafting and negotiation of agreements in a transaction, as well as all related ancillary agreements. The drafting of an agreement is a detailed and complicated process, so it is advised that you seek the guidance and assistance of an experienced legal professional.
Closing problem identification
As mentioned earlier, a legal due diligence process reveals hidden risks so it can uncover ‘skeletons’ that may be hiding in the ‘closet.’ By uncovering potential problems, delays with the deal closure are more unlikely.
How can we help?
Legal due diligence can seem like a hard and tedious undertaking; not to mention troublesome, time-consuming, and expensive. But it is essential in getting results and making sure a proposed transaction is good, wise, and lucrative. Above all, legal due diligence gives a buyer in a transaction a good idea as to what is being sold including the grey areas that are related to the purchase and the industry it belongs.
Regardless of why you need legal due diligence, seeking the assistance of our reputable team of legal due diligence lawyers will make it incredibly easy for you to predict and navigate legal roadblocks you might come across along the way.
The attorneys here at HHS Lawyers are adept at performing legal due diligence which is a critical component to the following sectors and corporate transactions:
Mergers and Acquisitions
Our attorneys provide specialized legal due diligence and all related M&A services for multinational and national Private Equity or Corporate clients. Our team of experts also strive to identify missed opportunities that may add value to a business.
As of the moment, the firm is handling a number of mergers and acquisitions, all thanks to our M&A team that is capable of finding solutions and achieving results even in challenging markets, most especially the new, emerging ones. Because of our competent experts, we are able to utilize different perspectives in assessing risk, as well as on advising clients regarding any potential transactional problem area.
Foreign Direct Investment (FDI)
For years, the FDI legal experts of HSS Lawyers have advised foreign investors regarding the structuring and establishment of acquisitions, disposals, and other transactions. Importantly, the firm manages the entire divestment or investment process for all of its clients, from determining the best way to structure deals and giving assistance in the review of potential business locations and partners to conducting legal due diligence on a target company or asset.
The disposal of an asset is an important commercial decision you can make. HSS Lawyers can help and advice on every single aspect of a transaction as our specialists have years of experience acting for sellers and buyers alike. The firm frequently advises on the disposal of retirement sales, shares, startups, and asset only transactions among others.
HHS Lawyers help clients maximize return and manage investment risks throughout an entire investment’s lifespan. We regularly provide clients with advice not just for making investment decisions, but also for the creation of post-investment growth strategies. Private equity investors and investee companies trust the firm as well in assisting them on all investment transactions including secondary buy-outs.
The intensive experience of the entire firm on Private Equity legal due diligence means we’re always thinking ahead, anticipating any potential issue while helping clients realize every single one of their business objectives.