Legal Due Diligence

Topics: Due diligence, Mergers and acquisitions, Contract Pages: 4 (1360 words) Published: March 13, 2012
Introduction

Due diligence has its origins in the Roman law concept of Diligentia. Like its original meaning of the term in Anglo-American legal system has evolved into a standard of care which a buyer must take "due care" in connection with such transfers, acquisitions and lending. For Swedish whichever is the meaning closest to describe a procedure where a proposed köpföretag examines a target economic and legal status as a condition of an acquisition. The study's findings are a basis for decision before a row. investment and a due diligence should therefore be seen as a key part of any acquisition process. There are strong reasons to due diligence, hereinafter referred to as due diligence, shall be considered as market practices in corporate acquisitions. Right of State may be considered unclear and to be able to clearly explain the legal consequences köprättsliga deleted this statement from such a practice is not established. Furthermore, the Sale of Goods Act applicability in a business discussion in doctrine, supported by practice, but that agreement has been reached. The description below is based on the Sale of Goods Act dispositive nature of the consequence that the law felbestämmelser enters into the agreement does not govern the buyer's and seller's commitments and obligations.

The extent of information to be analyzed and the accompanying demands for specialized skills, has led to the buyers usually employ outside consultants to carry out business surveys. More recently, increased frequency of use of another form, known vendor due diligence, where external consultants on behalf of the seller conducting a business survey that is then used in the transfer process with different köpkandidater. It should be noted that a significant difference exists between the purchase of the business through acquisitions of unlisted shares, often called the negotiated purchase, and acquisition of businesses by listed shares, known as non-negotiating the purchase....
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