Due Diligence

2bc5d9d7c195004a7bea0bc3a16867edDue diligence refers to a set of procedures taken to investigate whether an opportunity is legitimate or advisable. The Entrepreneur Law Center, P.L. conducts a variety of due diligence engagements to evaluate whether a given acquisition or investment is advisable considering the strategic, financial, and operational risks and potential rewards of an investment opportunity. Typically this is performed on behalf of angel investors, who need to evaluate whether an early stage capital infusion into a company is supported by a sound opportunity and whether the level of investment is properly priced given a set of criteria.

Due diligence is also performed on behalf of companies, who may want to evaluate a potential strategic partner, customer, potential shareholder, vendor, distributor, or supplier. For instance, prior to launching an international operations, due diligence will be necessary to evaluate the competitive landscape of the foreign market, the legal and market considerations to be considered when operating in a particular foreign market, and the qualifications of the various customers, suppliers, employees, and other key contributors to the venture.

The Entrepreneur Law Center’s Due Diligence services include:

  • Evaluation of legal considerations of a decision, including review of direct agreements and review of third-party agreements affecting a decision;
  • Collection and documentation of corporate records;
  • Evaluation of opportunities, considering market risks and other competitive factors;
  • Financial statement review;
  • Review of pending and threatened litigation impacting investment decision;
  • Evaluation of corporate structure, shareholder agreements, bylaws, and minutes of meetings to determine risks and advisability of investment; and
  • Investigation of past events, including investigation of potential fraud.