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Due Diligence - What you need to consider

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Lawdit Solicitors - Expert Author

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Written on 29 October 2014

You are involved in buying a business and you want to get the deal done as quickly as possible. This should not mean that you short cut the due diligence process. Due diligence is one of the key elements when buying a business and if carried out thoroughly should avoid you uncovering some expensive problems once you have purchased the business. A non exhaustive list of matters you need to consider when carrying out due diligence is below.

  • Accounts
    • Bad debt
    • Audited Accounts?
    • Age of the accounts
  • Historical Information
    • Any Inconsistencies?
    • Profit Margins, Growth, Overheads and Working Capital
  • Financial Projections
  • Assets and Stock
    • Stock Levels
    • Legal Ownership
  • Property
    • Property Searches
    • Review of Title Documents
    • Covenants and Easements
    • Planning
    • Surveys and Valuation
    • Lease Review
    • Environmental Issues
  • Customers and Suppliers
    • Review of the Customer and Supplier database
    • Contracts Review 
    • Can Contracts be Transferred or Assigned?
    • Breakdown of Major Customers/Suppliers 
  • Finance Agreements
    • Hire Purchase Agreements
    • Lease Agreements for Equipment
  • Employees
    • Employment Rights
    • Liabilities
    • Redundancies
    • Introduction of New Staff
    • Employment Contracts
  • Intellectual Property
    • Protection of Confidential Information, Trade Secrets and Know How
    • Brand Protection
    • Establishing Ownership
    • Assignment of Intellectual Property
    • Licensing of Intellectual Property
  • Pension Scheme
  • Any On-going or Potential Litigation
  • Commercial Overview
    • Business Environment
    • Identify Potential Opportunities/Risks in the Market
    • Suppliers/Customers Opinions
  • Legal Steps Required

If you are buying or selling a business and require any information or assistance please feel free to contact us.

Written by Muhammed Poswall


About the Author

Lawdit Solicitors offer services and advice for litigation, commercial contracts, Intellectual Property and IT legal agreements. We are experts in commercial law with a heavy emphasis on Intellectual Property, Internet and e-commerce law. Lawdit is a member of the International Trademark Association, the Solicitors' Association of Higher Court Advocates and we are the appointed Solicitors to the largest webdesign association in the world, the United Kingdom Website Designers Association.



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Article Published/Sorted/Amended on Scopulus 2014-11-03 09:08:28 in Legal Articles

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