In the realm of business transactions, particularly those involving large acquisitions, sales, or partnerships, the road to a successful deal is often paved with meticulous due diligence. That's where the role of an experienced transactional attorney becomes indispensable.
Due diligence entails deep diving into the potential legal, financial, reputational and operational risks that could lurk in the details of a deal. The stakes are high, and the consequences of any oversight can be costly, making the case for why a seasoned attorney should be by your side, guiding you through the complexities.
Streamlining Due Diligence
So, what exactly does an attorney examine during due diligence? Let’s start with existing contracts.
Existing contracts are an often overlooked but significant player in the outcome of a transaction. An adept attorney ensures that you're not walking into a minefield of unfavorable terms or restrictive agreements that (when inherited as a consequence of a deal) could handcuff your business’s growth or operational flexibility. Each contract needs a thorough review to gauge how it aligns with your strategic objectives and long-term success.
Another critical area is organizational matters. A company isn’t just about its products or services; it’s also about its structure, its people, and its history. Difficulties with co-owners, shareholders, or unclear corporate structures can spell trouble and result in a lot of unnecessary headache. During due diligence, a competent attorney meticulously reviews all structural documentation to ensure that everything from equity transfers to shareholder agreements is transparent and in order. This not only helps you avoid immediate problems, but it sets a clear, smooth path for future operations.
Litigation is another terrain an attorney navigates on behalf of your business. No business is immune to disputes or legal threats, whether they are bubbling under the surface or fully underway. Comprehensive legal due diligence includes compiling and analyzing all litigation threats—active, pending, or past. This scrutiny extends to any arbitration proceedings that might impact the business. Understanding these risks upfront can mitigate surprises down the road, especially after the deal is concluded.
The Benefit of Due Diligence
Why can't businesses simply conduct this due diligence themselves? While it's possible, the reality is that a legal expert brings a wealth of experience to the table that ensures your due diligence is comprehensive. This isn't just about knowledge—it's about perspective. An experienced attorney brings a level of scrutiny and expertise that can spot and provide effective and practical solutions that can be adopted as conditions (required to be satisfied by the other party) to a prospective deal.
Privatus Counsel exemplifies this approach with a concierge, white-glove service in legal advisory. We’re right alongside you for every step of your company’s next big move to ensure your company's best interests are being considered at every turn. In short, Privatus Counsel ensures that your business transactions are as smooth and successful as possible. Curious about how this can benefit your next business venture? Speak with a Privatus Counsel representative today to learn more about how we can help streamline your due diligence process and safeguard your business interests.