Conducting legal due diligence of the company itself (by the company owners).
Also known as Vendor’s due diligence.
Even in the conditions of the Slovak business environment, company owners have begun to realize that preparing their own company for an offer (for sale) is an important factor in the successful sale of their business.
Legal due diligence of the target company (target asset) by its owners is precisely a free translation of the term Vendor’s due diligence.
Your 6 reasons why:
Such legal due diligence gives you, as owners, a strong hand:
▪️you gain an overall picture of the company intended for sale (or the asset they are interested in selling)
▪️risks are identified that a future buyer could use as an argument to reduce the purchase price
▪️the company’s undeniable strengths are identified (e.g. key employees, strategic business partnerships, intellectual property, etc.)
▪️time (yes, precisely that commodity which allows owners to remedy risks sufficiently in advance of proceeding with an offer for sale)
▪️identification of the scope for negotiating the purchase price (in other words: below what amount in € the owner simply will not sell the company)
▪️preparedness (of both the company and the owners themselves for what will follow during the transaction)
With these 6 reasons why you should arrange legal due diligence of your company, we are answering your question as to whether you should undergo legal due diligence.
Strategic, expert legal advice, delivered in an understandable way, is crucial in this process.
Write to us: skypalova@skylex.sk
