Due Diligence: Task Legal Due Diligence

Mar 23

THIS IS THE FREE, REDACTED VERSION OF THE TASKS IN THE M&A REFERENCE MODEL  AND IT IS LICENSED UNDER Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International THE FULL SET OF DATA HAS TO BE LICENSED COMMERCIALLY .  HERE is a full model example for one task.

The task has the following goal(s):

Legal aspect: analyzed

Risk: analyzed

Draft Legal Integration Plan: prepared

The task has the following objectives:

Quality: maximized

Information asymmetry: minimized

Short description of task Legal Due Diligence:

Legal due diligence covers the examination of legal aspects in the contractual arrangements and also general procedures of the target company. An essential point is the examination of the existing contractual relationships of the target company, such as contracts with suppliers, banks, partners and with customers.

The task uses the following business object types:

Legal aspect of a target partner contract, Litigation, Legal risk of the target, Legal aspect, Legal aspect of an insurance contract, Insurance contract, Insurance company, Legal aspect of the target's service contract with external employees, Legal aspect of the license contract to the partner, Legal aspect of a target customer contract,

Questions to be used during the execution of the task

The task is executed with the following questions, among others:

Which legal entities are to be considered legally?
Which legal form do the legal entities have?
Which contracts exist with customers, suppliers, internal and external employees?
Which insurance contracts does the target company have?
Which contracts exist with partners of the target company?
Do partner contracts with exclusive clauses exist?
Are the target company's contracts with partners in compliance with the law, e.g. with competition law?
Which rental agreements does the target have and which clauses do they contain?
Which property does the target own?
Are there any actions pending against the target company?
Are criminal proceedings pending against the target company or members of its management?
How did the target interact with regulators?
What was the target's interaction with financial authorities?
How are contracts with suppliers structured?
Are the target's contracts with suppliers in compliance with the law, e.g. with competition law?
Which real estate is owned by the target?

How are contracts with managing directors structured?

THIS IS THE FREE; REDACTED VERSION OF THE TASK IN THE M&A REFERENCE MODEL: THE FULL SET OF DATA HAS TO BE LICENSED

Karl Popp www.drkarlpopp.com