Question 1

What is our Business Legal Due Diligence service?

Accepted Answer

Our business acquisition legal due diligence offering aims at conducting a legal due diligence investigation into either: 1. A company that you wish to purchase or investigate (known as the "Target Company"); or 2. Your own company if another person or company wants to potentially purchase shares in your company, acquire or merge with you.

Question 2

What will the Legal Due Diligence Report contain?

Accepted Answer

The main purpose of a business acquisition legal due diligence is to give you the necessary information to acquire, merge, or purchase a Target Company, or to provide such information to potential acquirers in respect of your company. The information contained in the due diligence report will: 1. Allow one to make an informed decision in regard to the proposed business acquisition, merger or purchase; 2. Identify, understand and quantify potential "deal breakers" and other risks associated with the a business acquisition, merger or purchase; 3. Verify the accuracy and completeness of the representations and warranties made by the potential sellers to the Target Company; 4. Place one in a better position to negotiate or adjust the business acquisition, merger, or purchase price as may be appropriate, and to tailor the appropriate warranties, representations and indemnities in this regard; 5. Identify the legal, regulatory and contractual impediments to the conclusion of the proposed transaction, including any governmental or other approvals required.

Question 3

What information do we request and require from you?

Accepted Answer

After you checkout, we will request that you send us (to the extent that each apply) the following for our review (We will guide you through the process): 1. Corporate Records: Company MOI, Shareholders Agreement, share register, register of directors; 2. Finance Documents: Any documents relating to any securities offerings, loans, lines of credit, agreements incorporating borrowings, any documents evidencing guarantees, inter-company loans, any other agreements with creditors; 3. Litigation: Schedule of all material litigation, disputes or administrative proceedings; 4. Intellectual Property: Schedules of all intellectual property owned by the Target Company including trademarks, services marks, trade dress, license agreements, trade secrets. Also, agreements with other contractors, entities or other persons which may be tasked with doing services or creating works on your behalf; 5. Property and Assets: Schedule of all property owned, leased or used by the Target Company including plant and equipment, lease agreements, hire purchase agreements; 6. Material Agreements: All other agreements that may be material to a company relevant to its industry or not mentioned above, such as material acquisition documents or research development agreements, supplier contracts, customer agreements, consulting or advertising agreements.

Question 4

What is not included in the package?

Accepted Answer

The package will include the review and preparation of a red flags report based on the top 10 material contracts / policies as advised by the client and identified by our team. Should you wish for the review of further contracts, additional contract reviews will be charged out at a rate of R800 per contract.

Question 5

How long will we take to compile the Legal Due Diligence Report?

Accepted Answer

For our standard due diligence report, we take a maximum of two weeks to compile the report. Please note that should we be called upon to consider more than the standard 10 contracts, our turnaround time may differ. We will always keep you posted on turnaround time however.

Question 6

Can this service be used if I'm selling my company?

Accepted Answer

Absolutely. This service works for both buyers and sellers. If you're selling your company or seeking investment, a vendor due diligence report allows you to proactively identify and address potential issues before presenting to buyers. This can streamline negotiations and demonstrate transparency to potential acquirers.

Question 7

What types of transactions does this due diligence cover?

Accepted Answer

Our legal due diligence service covers share purchases (acquiring shares in a company), asset purchases (acquiring specific business assets), mergers, and investment transactions. The scope can be tailored based on the specific transaction type and your requirements.

Question 8

Will the report identify competition law or regulatory concerns?

Accepted Answer

Yes, our report identifies legal, regulatory, and contractual impediments to closing—including Competition Commission notification thresholds, sector-specific regulatory approvals (such as ICASA, FSCA, or industry-specific regulators), and any governmental or third-party consents required for the transaction.

Question 9

What happens after I receive the due diligence report?

Accepted Answer

The report serves as a foundation for your transaction decisions. You can use the findings to negotiate price adjustments, request warranties or indemnities in transaction agreements, require the seller to remedy identified issues before closing, or in some cases, decide not to proceed with the transaction. Our attorneys can also assist with drafting the necessary transaction agreements if required.

Question 10

Do you offer related transaction services?

Accepted Answer

Yes! We offer a range of corporate transaction services including [Share Purchase Agreements](/southafrica/southafrica-custom-share-subscription-agreement), [Shareholders Agreements](/southafrica/southafrica-custom-shareholders-agreement), and [Assets Purchase Agreements](/southafrica/southafrica-assets-purchase-agreement). These can be bundled with your due diligence report for a comprehensive transaction package.

Legal Due Diligence for a Business Acquisition, Merger or Share
Purchase

Service Details

Who Is This For

Tailored To Your Needs

Prepared By Experts

Why Conduct Legal Due Diligence

Determine Acquisition Viability

Aid Price Negotiations

Identify Red Flags Early

Verify Representations

Tailor Warranties & Indemnities

Identify Regulatory Hurdles

Join 6000+ Businesses Who Trust Us

Meet Some Of Your Expert Team

Tamara

Alicia

Johanna

Ayesha

Geraint

Kyle

Drew

Chris

Antonella

FAQs

Legal Due Diligence for a Business Acquisition, Merger or SharePurchase