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What measures need to be taken before buying an existing active company?

Hi,

I am planning to buy an existing active company, 13 yrs old, but I foresee legal issues/hidden liabilities later.

How can I best safeguard myself?

What measures need to be taken before the transfer?

Please advice!

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Colin Biggers & Paisley Lawyers (Middle East)
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14 Dec 2020, 05:51

Dear questioner,

We would recommend that proper legal and financial due diligence must be done before you purchase the company.

The due diligence exercise will help you to calculate the value of the asset, company, or product both in terms of money and time, determine whether there are any liabilities against the company, ascertain the quality of financial information available and quantify it and check the brevity, genuineness, and accuracy of the information provided.

Please contact us via phone or email for a detailed discussion and assistance.

Thanks!

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