Due diligence is critical in a merger or acquisition scenario. This exercise is essential not only to investigate fully what is proposed to be sold or acquired or included in a merger but also to ensure a smooth unfolding of the transaction. From a legal perspective, issues that are typically reviewed are contractual relationships, employment issues, contingent liabilities and litigation, regulatory compliance and intellectual property.
The due diligence process ought to be commenced as early as possible in the transaction in order for the major issues at stake and potential pitfalls to be identified and tackled forthwith, as this will have a bearing on the structure of the transaction, terms and warranties. Very often, a legal due diligence is conducted in parallel with a financial due diligence, as the legal due diligence may well serve as a check on the conclusions of the financial due diligence.
The firm is in a position to carry out all aspects of a legal due diligence and has in the past been engaged to carry out due diligence exercises in diverse scenarios and involving different levels of complexity, for both local and overseas clients.