Legal Due Diligence Checklist
Legal Due Diligence Checklist “While the term cannot be found in the dictionary, due diligence can be defined as the careful inspection of an item intended for purchase” (Stern, 1993). “Scrupulous due diligence is critical to determine if the offering is cost-effective” (Stern, 1993). Most potential purchasers of businesses now agree that they should carry out due diligence on a business before agreeing to buy it. According to Hall (2004), “the reasons for due diligence will vary and may, in any particular instance, include verification of the commercial rationale for the acquisition, planning the integration of the acquisition, understanding accounting principles, assessing the quality of assets and seeking to quantify contingent liabilities.”
Analysts of Future Venture Capital Firm must assess the viability of investing in the LTC Landscaping and Tree Trimming Newco Project. The analysts will examine and identify investment issues via a legal due diligence checklist. The importance of each due diligence checklist item will be explained, as well as, how this item may impact the investment decision. The legal due diligence checklist will consist of the following eight key checklist items comprising the investigative process phase: corporate record information; business, operational information; personnel information; property information; contracts and leases; financial and asset information; environmental information; and litigation.
Corporate Record Information
The first step in our due diligence checklist will be to conduct research regarding the company’s public disclosed information and corporate records. This section of the checklist will include information such as corporate certificates and articles of incorporation, determination or organization; corporate by-laws; partnerships, joint ventures or affiliates; stock ownership and stock ledger book; schedule of officers, directors and committee members. One primary source of information
Analysts of Future Venture Capital Firm must assess the viability of investing in the LTC Landscaping and Tree Trimming Newco Project. The analysts will examine and identify investment issues via a legal due diligence checklist. The importance of each due diligence checklist item will be explained, as well as, how this item may impact the investment decision. The legal due diligence checklist will consist of the following eight key checklist items comprising the investigative process phase: corporate record information; business, operational information; personnel information; property information; contracts and leases; financial and asset information; environmental information; and litigation.
Corporate Record Information
The first step in our due diligence checklist will be to conduct research regarding the company’s public disclosed information and corporate records. This section of the checklist will include information such as corporate certificates and articles of incorporation, determination or organization; corporate by-laws; partnerships, joint ventures or affiliates; stock ownership and stock ledger book; schedule of officers, directors and committee members. One primary source of information
References: Astute Diligence (2008). Due diligence checklist. Retrieved May 27, 2008, from http://astutediligence.com/Diligence_Checklists.htm. Hall, R. (2004). Some idiosyncrasies of US due diligence. International Financial Law Review, April Supplement. Retrieved May 28, 2008, from EBSCOhost database. Kassel, A. (2005, May/June). The many faces of EDGAR. Online Magazine, 37-40. Retrieved May 29, 2008, from www.onlinemag.net. MPN Brokerage (2006). Due diligence information checklist. Retrieved May 26, 2008, from http://wwwq.mpnbrokerage.com/downloads/mpn_due_diligence_checklist.doc. Stern, L. (1993, December). The crucial role of due diligence. Mortgage Banking, 54(3), 54-60. Retrieved May 29, 2008, from EBSCOhost database. Tergesen, A. (2006, January 16). Do-it-yourself due diligence. Business Week, 3967. Retrieved May 29, 2008, from EBSCOhost database.