Legal and tax due diligence

Legal and tax due diligence

The due diligence conducted by our firm involves a detailed analysis of all aspects regarding the operations of an establishment which is a separate entity from our Client. It includes, in particular, legal, tax, commercial and financial assessment of an entity. The due diligence process is usually conducted before a capital transaction which is important for the Client, including:

  • acquisition of shares in a company,
  • purchase or lease of an enterprise or its organised part,
  • division, transformation or merger of business entities,

In the course of the due diligence process, our Law Firm conducts the following activities:

  • analysis of corporate documents of the company from the point of view of their completeness and compliance with legal regulations, dividing them among individual units operating within the company,
  • drawing up a list and assessing the legal status of the real estate properties within the company, as well as high value tangibles,
  • performing the analysis and assessment of contracts concluded with business partners, contracts with suppliers, credit facility contracts or contracts with insurance companies,
  • drawing up a summary report of any existing dues from third parties, assessing whether potential claims against the audited entity are viable, analysing any litigation and enforcement proceeding pending on the initiative of or against the audited entity,
  • analysing the enterprise from the point of view of its organisational structure, including human resources (employment contracts, long-term contracts of mandate, payrolls, activities of trade union and work councils),
  • analysing relations between the audited entity and other potential affiliated entities,
  • verifying whether the audited entity duly fulfils its legal obligations, especially those with regard to the National Court Register and tax authorities,
  • assessing the activity of the audited entity from the point of view of requirements under administrative law, including verification of permits, licences, concessions and other type of consents granted by administrative bodies,
  • performing any other activities which may be required in a given transaction or which stem from the client’s needs.

The Law Firm also conducts internal legal and tax audits at the request of a company owner, both within a limited scope determined by the client or with regard to all aspects of operation of the audited entity.

In the course of the due diligence process as well as in conducting legal and tax audits, our firm uses the assistance of its associated tax advisors, expert accountants and auditors. Thanks to this, our services are fully comprehensive and the client does not need to seek assistance from external firms.