Carrying out Legal Due Diligence for the Target Company (Legal Due Diligence)

Legal review – Important step before mergers & acquisitions

In M&A (Mergers & Acquisitions) deals, legal due diligence of the target company is a mandatory step to evaluate the legal, financial, tax status and potential risks before signing the transaction. If you skip this step, the buyer may incur potential debt, labor disputes, tax obligations or even the transaction may be void.

Legal review helps businesses:

• Accurately determine the value and risk of the target company.
• Make accurate investment decisions (go/no-go).
• Prepare the basis for negotiating prices and terms of M&A contracts.
• Limit legal and financial risks after the transaction is completed.

Legal review service at DEDICA

DEDICA provides comprehensive Legal Due Diligence services to customers, including:

Review legal documents

• Check establishment license, business registration certificate, IRC (if any).
• Evaluate compliance with the Enterprise Law, Investment Law and specialized regulations.
• Check the legal status of assets, intellectual property rights, and sublicenses.

Review contracts and financial obligations

• Analyze important contracts: purchase and sale, distribution, agency, loan, land lease, factory lease.
• Check liabilities, guarantee obligations, and financial commitments.
• Assess risks arising from unfavorable terms or potential disputes.

Review labor and tax compliance

• Check labor contracts, collective labor agreements, and company regulations.
• Evaluate the status of social insurance, health insurance, unemployment insurance and other benefits.
• Review the declaration and payment of VAT, corporate income tax, personal income tax, and contractor tax.

Report review results

• Prepare a detailed Legal Due Diligence report, highlighting findings, risks and recommended solutions.
• Make proposals to adjust M&A contract terms to protect customer interests.

Benefits of choosing DEDICA

• Team of experienced lawyers: knowledgeable about many professions and specialized regulations.
• Comprehensive risk analysis: not only legal but also financial, tax and labor.
• Clear, easy-to-apply reports: help customers make quick decisions.
• Protect maximum benefits: detect risks before transactions, minimize losses after M&A.