How necessary is the assistance of an Italian Solicitor in due diligence?
Legal due diligence is the process that allows you to analyze all the elements of a company from a legal point of view. It is a crucial step of its existence, the sale.
An essential phase, due diligence, usually precedes the sale of a company, business unit or company shares.
This preliminary study of the company is essential to determine its criticalities and potential to decide whether to finalize the operation.
What legal due diligence investigates
Legal due diligence concerns all legal aspects of the company related to contracts, the corporate structure and its assets, intellectual and industrial property, and existing relationships with employees, institutions, suppliers and customers.
A vast field, therefore, varies according to the size of the business and the company itself.
The Italian solicitor expert in business law will work with the entrepreneur to find all the valuable information for a complete examination of all legal aspects.
The lawyer will proceed analytically to examine all documentation, highlighting any critical points and describing each aspect given the operation to be performed.
The legal due diligence will end with a comprehensive analysis report. This document may be the only one or may be added to other due diligence, such as accounting and tax.
Advantages of due diligence in the sale of a company
Due diligence is the fundamental pivot for deciding whether or not to carry out a company or share purchase operation.
The buyer has this tool available immediately (it is advisable to define it already in the letter of intent) to evaluate the operation’s soundness.
Italian Solicitor and due diligence
The continuation of the negotiations will depend on the outcome of the examination.
The analysis may highlight, for example, critical issues with employees and suppliers, ongoing disputes and administrative problems that could make people desist from continuing the operation.
It is therefore advisable not to underestimate this phase, for the sole fact of wanting to conclude a deal that, at first, may seem convenient.