Legal Due Deligence is a complex legal research and assessment, which is conducted before the implementation of a large business transaction, for example, investment, purchase of a company, or merger. The goal of such research is the revelation of legal obligations, risks, issues of compliance with regulations and responsibilities connected with the target company or asset, so that the parties know exactly what they are dealing with and make an informed decision.
The main components of Legal Due Diligence are: the study of corporate documents to confirm the ownership and structure of the company, the assessment of compliance with acting legislation and regulations, the checking of current and expected court disputes, and the analysis of contracts important for the business. The process of Legal Due Diligence facilitates the revelation of potential and factual risks or obligations connected with the company.