Due Diligence

Due diligence refers to individual efforts to meet the requirements an agreement in determining the accurate value of a business’s assets and liabilities and helps the potential buyer in the making of purchase decisions.

What Is Due Diligence?

Due diligence requires a detailed record of the transactions made by either party before the actual purchase. It is usually overseen by a team of best commercial lawyers  Perth before the purchase, reducing the risk and maintaining transparency. A buyer needs to undertake due diligence before finalising the purchase, ensuring all the mentioned conditions in the contract are followed.

Legal Due Diligence Process

Due diligence is knowing the business’s potential value by checking accounting sheets, legal documents, and performing an assets and liabilities inspection. It is undertaken when an individual or a company wants to purchase a business or invest in it. The process is overseen by a team of lawyers who can demand interviews with the employees. Due diligence before a purchase is essential for preventing unwanted risks and acquiring a thorough understanding of the firm.


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The process itself involves three stages of completion:

  • Preparation – This stage is for setting up objectives and prioritising the information. It is important to set goals and decide the information beforehand as it is a time-consuming process. So, it is prudent to prioritise the correct data to get results more efficiently.
  • Inspection – The due diligence lawyer will investigate the documents and accounts of the business to form a legal opinion and advise the potential buyer whether it is beneficial to purchase or invest in the business. The inspection will be carried out according to the goals set by the team during preparation. The legal team can demand documents that they require to assess the value of the company. Interviewing the employees is a good way to extract information about the working and the structure of the business.
  • Deduction – The investigation results are presented to the buyer after the lawyers have worked on the information to form an opinion. It consists of the details of the intellectual property of the firm, the assets and liabilities, and different business dealings that might affect the buyer. Overall, it serves as a report which states whether it is beneficial to invest in a transaction or not.
How Our Commercial Lawyers Help You With Due Diligence?

How Our Commercial Lawyers Help You With Due Diligence?

Due diligence solicitors at Commercial Law Perth can assist you at every stage throughout the completion of the process. From preparation to the investigation, having a lawyer to oversee the process is highly beneficial. There is a list of technical documents that are needed to be examined for the correct assessment of the investment. This process can be overwhelming without the support of a legal team.

Confidentiality is the key in such processes and the potential buyer is required to keep all the information he acquired to him/herself until the purchase is finalised. The presence of a legal team is beneficial both for the buyer and the seller, as the lawyers can protect the confidentiality and at the same time provide a thorough investigation of the transaction.

How Our Commercial Lawyers Help You With Due Diligence?

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