Foreign investors wanting to conclude a contract with a Latvian company or purchase a company in this country will usually perform due diligence procedures in order to verify the company’s legal and financial status. Company due diligence refers to performing a thorough investigation on the company in order to minimize the risks that could lead to an unsuccessful cooperation.
Company due diligence in Latvia can be performed on several levels depending on the type of transaction and what the investors want to achieve. Latvian company due diligence can be divided into:
Our Latvian lawyers can perform the type of company due diligence our clients request.
The purpose of due diligence in Latvia resides in the information a client wants to find out about a company. Due diligence is usually performed whenever an investor wants to obtain all relevant information regarding the company he/she is about to enter in a relation with in order to make an informed decision on the future steps to be taken.
Company due diligence is also performed when buying a product or service from another company. Latvian company due diligence may also be performed when purchasing a company and details like possible litigations or employment issues need to be addressed.
Shareholders can also order a due diligence process to be conducted on their own company. Legal due diligence is often employed in Latvia by companies that want have a better knowledge about their company and that will help them better target customers. Company due diligence is also performed in order to achieve more visibility and to have a better communication with clients. The due diligence process can be very short and it takes a few days or very complex and, in that case, it could require more time.
There are no comments