In connection with an acquisition a large number of questions arise. It is for the purchaser very important to make a thorough investigation of the company, commonly referred to as a due diligence process. The due diligence normally consists of an investigation of the financial, tax, legal and market/commercial situation of the company that shall be acquired.
If the company owns real estate property it is also important to make a technical and environmental investigation of the property. It could also be relevant with an environmental investigation if it is a purchase of a manufacturing company.
The findings of such due diligence shall then be handled, e.g. through warranties from the seller in the purchase contract. For the seller it is important to use the purchase contract to limit its liability for any faults and deficiencies in the company and its business.
We advise sellers and purchasers of companies, participate in negotiations and conduct legal due diligence.