Due Diligence in M&A: How to Avoid Skeletons in the Closet

Due Diligence in M&A: How to Avoid Skeletons in the Closet

In Merger and Acquisition (M&A) processes, price is only part of the equation. The real value of a company lies in its unencumbered assets and the absence of hidden liabilities. Legal Due Diligence is the tool that protects the investor from unpleasant post-closing surprises.

SD&MP Checklist for a Winning Due Diligence:

  1. Corporate Compliance: Verification of minute books, chains of title, and commercial registries.
  2. Real Estate Assets and DUAT: Ensuring that land occupied by the target company has all updated legal documentation.
  3. Labor Liability: Audit of contracts, INSS payments, and potential court actions.
  4. Intellectual Property: Registration of trademarks and software licenses.
  5. Environmental Licensing: Especially critical for the mining, energy, and agriculture sectors.

SD&MP has a proprietary audit methodology that provides the buyer with a clear view of risks and opportunities. Through our reports, we help negotiate indemnity clauses and bank guarantees (Escrow Accounts).

Thinking about growing through acquisition? Talk to our M&A team before starting the Due Diligence process.

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