When purchasing a company, or seeking to buy a business, conducting legal, financial and operational due diligence is essential. The scope of the due diligence process will be based on the specific transaction and the purchasing company’s objectives. At Schlun & Elseven Rechtsanwälte, our lawyers are available to review the financial records, contracts, permits and licenses, intellectual property, employment matters, litigation history, and any other relevant areas of the other company. Our team will identify any potential risk or problems with that company, and provide our clients with comprehensive advice based on thorough research
Remember, legal due diligence needs to be tailored to the specific circumstances of the transaction and the nature of the target business. Our team will guide you through the due diligence process and provide expert advice based on your unique situation.
Financial Due Diligence
Our lawyers regularly advise clients on financial due diligence, whereby we review the target company’s financial statements, including balance sheets, income statements, cash flow statements, and tax returns. Such analysis allows us to assess the company’s financial health, profitability, and key financial ratios.
Working with our legal experts ensures your due diligence is organised, efficient and prepared for the purchasing process. Our lawyers will carefully follow the process to ensure that every material aspect is thoroughly documented and that your target company is accurately assessed.
Legal Due Diligence
Our team is prepared to examine the legal framework of the target company, including its corporate structure, articles of association, shareholders’ agreements, and minutes of meetings. This process also involves reviewing contracts with customers, suppliers, employees, and other stakeholders. Thorough legal due diligence will allow us to identify any ongoing or potential legal disputes, litigation, regulatory compliance issues, and contractual obligations.
IP Due Diligence
The value of intellectual property due diligence cannot be overstated. Our intellectual property law experts will assess the target company’s IP portfolio, including trademarks, patents, copyrights, and trade secrets. This process is vital as regards verifying the ownership and validity of the IP assets, and it also enables us to identify any encumbrances or licensing agreements, and assess potential infringement risks or disputes.
Compliance Due Diligence
Compliance due diligence enables our lawyers to evaluate the target company’s compliance with applicable laws and regulations in Germany, including industry-specific regulations. As a full-service law firm, our team is able to assess the target company’s record regarding compliance with employment laws, environmental regulations, data protection laws, and any other relevant legal requirements.
Employment Due Diligence
Our certified experts in German employment law are available during this process to review employment contracts, employee benefits, and compliance with labour laws. Using their expertise, they can identify any pending or potential labor disputes, collective bargaining agreements, and obligations related to employee terminations or severance.
Regulatory Due Diligence
Our lawyers will identify and review permits, licenses, authorizations, or certifications required for the target company’s operations. During this process, we can assess their validity, compliance status, and any potential risks associated with regulatory non-compliance.
Óperational Due Diligence
Operational due diligence is the process of evaluating the operational aspects of the business, including its organisational structure, production processes, supply chain management, and key operational contracts. Through our team’s work, we can assess the quality and reliability of suppliers, customer relationships, and any dependencies or risks associated with the operations.