Legal due diligence

We have significant experience with legal due diligences. From a legal perspective we study the following in the course of a legal due diligence:

  • organisational structure and company documents of the target firm,
  • current agreements and contracts for the last five completed financial years of the target company (e.g. with customers, suppliers, financiers, lessors, tenants, current insurance contracts, employment contracts, other agreements relevant from a labour law perspective as well as practices followed),
  • occupational accidents and insurance events over the last 3-5 years, pending legal disputes,
  • previous contracts regarding property(ies) owned by the target company and their acquisition,
  • current licences held by the target company,
  • relevant agreements relating to intellectual property rights.

In alignment with the goals of a legal due diligence and in consultation with our client, we request documents and statements from the target company for analysis based on our tailored list of questions for that firm. We take a look at records on the target company held by courts or authorities. The documents are examined at the target company, or if possible, at our office.

Constant consultation with the client during a legal due diligence

In the course of a legal due diligence, and together with our colleagues performing the accounting and tax due diligences at the target company, we conduct face-to-face discussions and interviews on one or more occasions with senior executives and/or senior staff at the company to learn more about the target company’s activity and to clarify our questions that arise during the examination of documents.

We identify the material risks for the client, and at their discretion we either prepare a shorter, summary report, or a more detailed report containing analysis and opinions of all the documents studied as well as a presentation and assessment of the identified risks. These reports are prepared in Hungarian, German or English and agreed with our client.

If the client opts to carry out the planned transaction as a result of the legal due diligence, we can help prepare and negotiate the necessary transfer contract and other related agreements, handle the “closing” procedure and take care of the subsequent legal work required in terms of amendments to company papers and documents.

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