[Investment] Conducting preliminary legal due diligence, which plays an important role when investing.
Article posted in 2023-07-31 15:04:29 | VEAT
Law firm Veat successfully performed the request for Veat to conduct a preliminary legal due diligence regarding A, an AI startup, which was considering fundraising.
A, anticipating its next round of investment, commissioned Law firm Veat to conduct a preliminary legal due diligence at the same level as the legal due diligence for the investment purpose.
Specifically, Law firm Veat meticulously checked whether there were any legal risks that investors might be concerned about, helping A proactively prepare for legal issues that could elicit requests for correction or concerns from investors.
Given the complexity and importance of corporate investment or acquisition procedures, legal due diligence is necessary. These legal due diligences play a crucial role in accurately understanding the current status of the company and identifying potential issues. Through a clear verification of the legal due diligence, delays in investment decisions can occur if unrecognized problems are discovered. Therefore, companies aiming for investment fundraising often request preliminary legal due diligence from Law firms.
A preliminary legal due diligence checks whether a company has any legal issues before receiving investment proposals or M&A offers, aiming to minimize legal risks and ensure a smooth investment decision after the investment is carried out.
From the perspective of an investor making a proposal, the fact that legal aspects are clearly established means that it can be carried out more safely and easily.
Legal due diligence is a complex and specialized field that identifies the current status of the company being invested in or acquired and various legal risks that may arise. For this reason, it is recommended to seek advice from ‘investment-specialized’ Law firms that comprehensively understand ‘corporate legal advice’ and ‘investment legal advice’.
Law firm Veat possesses extensive experience in advising various companies on investment matters, having ranked in the TOP 5 in ‘2022 Annual Bloomberg M&A League Table’ and being a ‘Finalist’ in the ‘Korea Deal Firm’ category for two consecutive years at ‘ALB Korea Award 2022’ – demonstrating its position as a ‘leader in investment & M&A legal advice’.
If you need specialized legal consulting on investment and mergers & acquisitions, including a preliminary legal due diligence, please contact Law firm Veat.
Thank you.
Law firm Veat