Preliminary Legal Due Diligence for Companies Considering Investment Attraction

Law firm Veat received a request from startup A (hereinafter referred to as the "client") to perform pre-legal due diligence for investment attraction.

The client was preparing for the next round of investment, which would begin in about 3 months, and wished to examine potential legal risks that investors might be concerned about in advance.

By performing pre-legal due diligence, companies can identify potential legal risks in investment attraction or merger and acquisition processes in advance and increase transparency and credibility. Therefore, we receive inquiries from companies that are likely to attract investment in the near future.

Law firm Veat comprehensively reviewed the client’s legal structure, intellectual property rights, contractual relationships, and compliance status. We discover legal issues within the company before substantive investment or acquisition discussions, explore solutions, thoroughly check the company's main contracts and legal obligations.

Furthermore, we provided a legal due diligence report including identification of potential legal issues that investors may be concerned about, solutions to rectify them, and future legal risk management plans.

What is pre-legal due diligence?
Pre-legal due diligence (Due Diligence) is a legal review process performed by a company when preparing for investment attraction, merger and acquisition (M&A), joint investment, or other important business transactions.

Pre-legal due diligence is an important process for companies preparing to attract investment. If legal issues of the investee or acquired company are not identified and rectified in advance during the investment or acquisition process, the investment decision may be delayed, or investment discussions may be canceled depending on the severity of the issue.

To prevent such problems, companies planning to attract investment should review various legal issues such as financial status, contractual status, intellectual property rights, and litigation risks through pre-legal due diligence. In complex transactions such as startup investment and M&A, pre-legal due diligence is essential to thoroughly understand the company's legal status and minimize legal risks, ensuring that investors can trust the company.

Law firm Veat supports companies in solving potential problems that may arise in the investment attraction process through thorough legal due diligence, improving the value of the company, and facilitating investment attraction for growth. We recommend consulting with Law firm Veat, which has extensive experience in legal due diligence, to reduce the legal burden that may arise during this process.

Law firm Veat is a law firm specializing in legal advice related to IT, startups, and M&A, and has outstanding expertise in the M&A sector, based on the achievement of ranking 2 in the Bloomberg League Table for transaction volume in the first quarter of 2023. Based on this expertise, we are a leading provider of not only large-scale deals but also mid-sized M&A deals, investment attraction for startups and venture capital (VC), and various M&A joint investments. In particular, the lawyers at Law firm Veat possess expertise in understanding both IT and law, enabling them to quickly and accurately identify client needs and provide optimized legal advice.

If you need legal advice related to pre-legal due diligence, startup investment, or M&A, please contact Law firm Veat.

Thank you.
Law firm Veat