In an increasingly competitive and regulated business environment, making informed decisions is key to protecting assets, minimizing risks, and maximizing opportunities. In this context, Due Diligence has become an essential tool for companies and investors looking to carry out strategic operations with legal certainty.
What is Due Diligence?
The term Due Diligence refers to the thorough investigation and analysis conducted on a company, project, or asset before completing a major transaction, such as a merger, acquisition, investment, strategic alliance, or corporate restructuring.
This analysis allows for a deep understanding of the legal, financial, accounting, tax, labor, and operational aspects of the subject under review, enabling clearer decisions with less uncertainty.
What areas does legal Due Diligence cover?
Legal Due Diligence typically involves reviewing:
📄 Corporate status: review of bylaws, board and shareholder meeting minutes, shareholding structure, and valid powers of attorney.
⚖️ Regulatory compliance: analysis of licenses, permits, registrations, and adherence to industry and tax regulations.
👩💼 Labor relations: employment contracts, social security obligations, labor liabilities, and compliance with the Labor Code.
📑 Current contracts: assumed obligations, termination clauses, exclusivity or non-compete agreements.
🏛️ Litigation or contingencies: review of legal or administrative proceedings that could pose a risk.
Depending on the purpose of the analysis, it may also include environmental matters, intellectual property, or cybersecurity issues.
When does your company need Due Diligence?
Due Diligence is essential in the following scenarios:
Before acquiring a company or strategic assets
It helps identify hidden liabilities, contractual obligations, or legal contingencies that could impact investment profitability.
Prior to a merger or strategic alliance
Ensures that both parties are fully aware of their legal standing and can negotiate fairly and transparently.
During capital investment or partner search processes
Potential investors will require assurance regarding the legal and tax standing of the target company.
Before a corporate restructuring or partial sale of the company
Facilitates accurate valuation and prevents issues during future audits or inspections.
What are the benefits of a well-executed Due Diligence?
✔️ Improves strategic decision-making
✔️ Reduces legal and financial risks
✔️ Increases the confidence of partners, banks, or investors
✔️ Strengthens transparency and corporate reputation
✔️ Enables better terms in corporate transactions
How can JVD Consultores support you?
At JVD Consultores, we have a multidisciplinary team specialized in corporate, tax, and labor law, offering a comprehensive approach to Due Diligence tailored to each client’s needs.
We assist companies and investors in purchase, merger, investment, or preventive audit processes, providing legal certainty and facilitating sound decision-making.
Is your company about to start a strategic process?
Conduct a timely review and protect your investment with expert legal advice.
📩 Write to us at [email protected]
