Financial due diligence
In the course of business (financial) due diligence, major aspects of the company’s activities are analysed i.e. history of formation and development, current market position, organisational structure and personnel, sales, assets and liabilities, tax position, cash flow adequacy. Also analysed at this stage are the management’s financial forecasts, internal control systems, efficiency of the financial control, accounting policy and internal audit.
Legal due diligence
During legal due diligence, the entire history of the company is assessed, including charters, substantial transactions, existing legal entities, and various commercial agreements (with a particular emphasis on the future liabilities, if any). As a result of the due diligence process, the corporate risks are highlighted and mitigated wherever possible; legal assessment of the assets and liabilities of the business is also carried out.