The investor should know the following
- legal scheme of organization of business, business models used in it (individual entrepreneurs, legal entities), relationships between the elements of the business system, to what extent this scheme is rational and logical in the context of the particular business model;
- property declared in the acquired business (real estate items, rights to land, equipment, objects of intellectual property), the way in which the abovementioned property is documented, availability of associated risks, disputes or encumbrances;
- system of relationships with counterparties (suppliers, contractors, customers), if these relationships are stable and long-term, the risks that may appear in future;
This is a short list of questions the answers to which can destroy all attractiveness of the successful business or, vice versa, confirm its stability and reliability.
Therefore, before investing the future investor should obtain complete and detailed information about the investment object, get a qualified assessment of all possible risks and take this information into consideration when making the final decision on investing funds, powers of control, distribution of shares among other investors, etc.
What will you receive?
The report on the due diligence results will contain a qualified assessment of all possible risks (legal, tax and organizational) which the investor will be able to take into account when making the final investment decision.