Due Diligence Service Companies, societies and companies with separate and distinct legal personality, must be up to date with its formal and material obligations, both legal and tax, labor and accounting. It is vital to have proper advice from the beginning, and delegate in the hands of management specialists, administrative, fiscal, labor and business legal.
procedures due diligence (due diligence) consist of conducting a rigorous and comprehensive review of compliance with these obligations by the Business Corporations or Companies, allowing the correction of defects or deficiencies noted in that review, allowing sanearla and put "current" in fulfilling those obligations.
These procedures are common in the procedures for acquisitions, mergers, etc ... where the acquirer intends to ensure its acquisition by conducting a comprehensive review of assets company, the existence of debts (vgr., Social Security, Treasury, etc ...), absence of hidden liabilities, loans, etc ... in short, as close as possible to the reality of product you intend to purchase.
But Due Diligence operations are not exclusive only to those operations. It is important to verify compliance with the obligations relating to the business, basically, to establish credit and build trust against third parties (inter-firm collaboration agreements, joint ventures, participation in society with an identical or similar, with government contracts public ...). This without prejudice, of course, the administrative sanctions that may be imposed by the Administration concerned.
It is also relevant to prove the proper performance of the obligations of corporate insolvency cases, where there are parts of qualifying for damages against the directors of the Company, and could result in liability to them for the failure in fulfilling the obligations regarding the company.
In short, if you manage a company, or are interested in purchasing or dispose (in whole or in part) a corporation, or are interested in lead bidder in a tender, or just want to verify compliance with the obligations regarding your company, you need a process of due diligence.
The 4 basic questions
An effi cient due diligence requires answering four basic questions: What are we actually buying? What is the single value of the target company? Where are the synergies, and where no skeletons hidden? And what is our retirement money? Each of these questions arouses a deeper level of inquiry than the last, putting under the microscope broader strategic logic of an acquisition. Successful acquirers attach great importance to the results of such research and analysis, to the point of being prepared to say no to an agreement, even in the fi nal phase of the negotiations.
