For both buyer and seller it is important to perform legal due diligence on the other party to determine if their representations are accurate and complete.
The buyer wants to make sure that:
- The seller has no issues that might impact the ability of them to complete the transaction.
- That seller is not involved in any law suits that might impact the sale.
The seller wants to make sure that:
- Any intellectual property has been properly protected.
- That there are no undisclosed outstanding law suits.
- That all of the disclosed assets are solely owned by the seller.
- That there are no undisclosed, outstanding liens on any assets.