Due Diligence Solicitors in London & Essex

Due Diligence Solicitors in Essex & London

When buying a company, due diligence allows the buyer to find out any information they would like to know about the business.

At Blacks Legal, we have extensive experience in carrying out due diligence and will always be on your side. To find out more about how we can help you contact our team today.

What is due diligence?

The buyer usually completes basic due diligence, and they would have obtained various copies of accounts, contracts, marketing materials and other documents before informing their lawyers. However, one of the first things that the buyer’s lawyers will do is to prepare a detailed list of questions forwarded to the seller’s lawyers about the accounts, assets, affairs, and financial and tax positions of the company. Often, they would answer the more technical questions, but the majority would be answered by the seller with the aid of the company’s accountant.

Usually, the seller might think the buyer’s due diligence questionnaire contains somewhat irrelevant questions. However, it needs to be remembered that the lawyer is looking for detailed technical points. The process is a constantly evolving one and often raises questions of its own, so it would be very unlikely for this process to end with the first questionnaire.

Buyers

The due diligence process mentioned here is the research carried out by the buyer into the affairs of the company they wish to buy. It is important to understand the company's financial position before the transaction takes place since, as the buyer, you could be personally liable for any debt.

Along with highlighting areas of liability, your legal team will also outline the potential future risks that this investment could have. Due diligence provides a close look at how a company is run, which is crucial to understand before buying in.

What do I need to do as a buyer?

Work closely with your team and ensure every question you have is answered, no matter how big or small. Due diligence can take time, but it will always be advised to take the time to understand the bigger picture.

Sellers

Many sellers underestimate the amount of management time that dealing with the buyer’s due diligence takes, and it can be an unwanted distraction from actually managing the business. It also may involve the sellers having to run after documents and information from third parties. Relying on a professional to help you in this process will give you time to focus on running your business and ensure all enquires are accurately responded to clearly and concisely.

What do I need to do as a seller?

Before putting the company up for sale, we advise that sellers try their best to get as much information and documentation (such as material contracts) together at an early stage. Our team can help you create a pack for the buyer with all relevant information disclosed, minimising the time the whole process will take.

Why choose us?

Whether you are looking to buy or sell your business, Blacks Legal can be on hand to make the process as smooth as possible. Our team of dedicated solicitors will focus on the sale at hand and answer any queries that arise.

With experience working with small start-ups to international companies, we know how important due diligence as a process is to your business growth.

Contact our Due Diligence Solicitors in Essex & London

If you are a buyer looking to carry out due diligence or a seller looking for a trusted team to assist in the process, Blacks Legal can help.