Legal and financial due diligence of acquired company

At the start of a project, investors often have to process a huge amount of information to assess the prospects of investments. Nevertheless, there are not always enough resources or expertise to assess key marginality and risk factors.

However, assessment of financial and legal aspects of acquired company is necessary. Experts have developed an algorithm of measures that will help to determine the prospects, risks, and trigger points of the project with sufficient confidence.

Business purchasers, professional investors, potential shareholders and company members are recommended to conduct legal and financial due diligence, including if the acquired company:

  • carries out reorganization;
  • buys or sells assets;
  • changes the company’s managers or management structure;
  • lends funds;
  • carries out risky activities;
  • carries out competitive activities;
  • has many pending legal disputes.

Due diligence before entering into transaction allows to obtain reliable financial and legal information about the feasibility of investment and possible legal risks and allows investment project participants to make effective strategic decisions.

The procedure for conducting legal and financial due diligence includes analysis of information about the company’s assets, the legal grounds for their acquisition, risks of third-party claims, risks in relations to management, availability of necessary licenses as well as company’s liabilities to counterparties, organization of financial accounting, and risks of insolvency. Based on the data obtained, the engaged specialist makes a conclusion about the presence or absence of financial and legal risks as well as feasibility of entering into a deal.

VALEN lawyers and accountants can provide full range of services related to legal and financial due diligence. The range of services provided includes the following:

  • consultation on all issues related to due diligence;
  • conducting due diligence;
  • preparation of conclusion based on the data received.

In addition to these legal and financial due diligence services, VALEN specialists can also provide the following services:

  • risk assessment and feasibility of M&A transaction;
  • negotiations on the terms and conditions of the upcoming transaction;
  • structuring, conclusion of M&A transaction.

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Leading Lawyers

Valentina Khlavich
Managing Partner
Thomas Relja
Partner
Dmitry Kofanov
Partner
Valentina Khlavich
Managing Partner

Law degree in the Russian Federation

Studied at the University of Passau, Germany

Foreign Languages: English, German

Since 2007 a lawyer in Beiten Burkhardt lawfirm

Since 2012 founder and managing partner at VALEN

Our specialists
Thomas Relja
Partner

Economics Degree

Foreign Languages: Croatian, English

5+ years as a head of Accounting and Finance in European Companies

2+ years as a SAP consultant for companies in Germany (Munich) and UAE (Dubai)

Partner at VALEN

Our specialists
Dmitry Kofanov
Partner

Certified Lawyer in the Russian Federation

Experience since 2003 – in Russian and foreign law firms

Since 2021 – partner at VALEN

Our specialists

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