Corporate legal due diligence is a structured review of a company's legal status, ownership, contracts, liabilities, regulatory compliance and risks before an investment, acquisition, financing or major transaction.
Typical outputs
- issue list
- risk classification
- corrective actions
- conditions precedent
- warranties and indemnities
- transaction recommendations
Due diligence helps determine what the company owns, what it owes, what approvals are missing and whether transaction terms should change.