Legal and tax DD

Previous legal and tax audit of the target company is a guarantee of completion of the M&A project without unpleasant surprise.

Among recommended key aspects of the legal audit are:

  • analysis of the company’s corporate history, the legitimacy of the transfer of the rights of former participants (including payment of the share capital, receiving of necessary approvals, permission for the concentration);
  • analysis of the legitimacy of possession and use of land (including issues of purchasing and disposal of agricultural lands, proper execution of land lease agreements, compliance with the land use requirements);
  • the legitimacy of the real estate possession (including issues of privatization, construction and reconstruction, compliance with its functional purpose, compliance with town planning restrictions as well as following the limits of the sanitary zones, conditions of land allotment);
  • availability of essential permissions and licenses (environmental permits, permissions on performance and maintenance of machines and mechanisms with a heightened level of danger, a license on use of drugs and precursors, permits on transportation, storage and use of toxic substances, permission on subsoil use);
  • description of key contracts and liabilities;
  • litigations involving the target company.

Timely detection of risks related to the target will help to estimate fairly the cost and expediency of such investment and (if applicable) to eliminate identified risks before the property purchase.

We have substantial experience in the area of legal and tax audit of complex infrastructure projects, including industrial enterprises, port terminals, elevators (grain storage), logistics centers, objects of the transport infrastructure, residential and commercial complexes.