Due diligence is the method of collecting information about a corporate or other company whenever there is a major business transaction like a takeover or joint venture. The collected information involves complete details about the products, marketing, financial status, legal issues, assets/liabilities, etc.
What is the purpose of doing legal due diligence? Well it is basically a precautionary thing. One can know the strengths and weaknesses of the company. Also it is the way to find out that all information has been disclosed to us. Thus it reduces future problems and ensures safety.
Due diligence is an art that requires expertise in asking gathering and reporting of sensitive information. During any investment some of the information to collect includes,
- Knowledge of assets(both tangible and non tangible)
- Liabilities and obligation of the company
- Bank account details
- Debt position
- Patents and trademarks
- Lawsuits pending
- Potential lawsuits expected
- Contracts/ warranties
When the takeover involves software companies due diligence is required that all the software being purchased is reviewed by expert legal professionals and making sure that all patents and copyrights are in order because of the high value of the software.
Managed Outsource Solutions is a US based legal services outsourcing company that offers very affordable legal due diligence services besides other legal services like legal transcription, legal documentation, litigation support and legal arbitration services to clients in the US, Canada and the UK.