The Due Diligence process may also be carried out when the company decides to grow, as it points out flaws and can present an assessment concerning risks and opportunities.

Due Diligence is the prior analysis of documents and information carried out by experts during mergers, acquisitions, or even partnerships between companies, and is increasingly common in business relations.

Previously reserved for large transactions, Due Diligence is becoming increasingly common, including in less complex transactions. “No one should do business blindfolded when it is possible to reduce risks, especially in relation to the companies’ financial status,” says Andressa Lago, Manager of the Paralegal area of the PLBrasil Group, which specializes in incorporation services and licenses and registrations rectification for companies.

In summary, Due Diligence analyzes corporate documents from the financial, accounting, and legal areas, as well as the incorporation documents, with the purpose of verifying whether the companies involved are in compliance (in the case of a merger or partnership) or whether the acquired company is in compliance. “If any issues are found, such as labor lawsuits and expired documents, the opposing party decides whether it is worth moving forward with the negotiations,” says the expert.

However, the Due Diligence is not used only for the mentioned cases. It can be carried out as a type of audit, when the company wants to know about its reality. “When a company wishes to grow, it carries out the Due Diligence. Such a process points out flaws so that improvements can be applied. Furthermore, it can provide an assessment of risks and opportunities,” she states.

Andressa Lago recommends the Due Diligence to be carried out from time to time. “This document analysis can be carried out whenever the company wishes to have control over its compliance,” she concludes.

About the PLBrasil Group

Since 2005, the PLBrasil Group has been offering business solutions to companies, investors, and foreigners who wish to expand their investments and have a quality back office. With the “Think Globally, Act Locally” vision, the consulting area has partners throughout the Brazilian territory who have deep knowledge of the techniques and legal bases for improving internal processes and controls. Makes It Easy!