Legal Due Diligence Case Study

Other examples include factory workers reporting a higher amount of defective goods than was actually the case, and then removing and selling some of the goods themselves. It is also common for professional buyers to buy products from a friend or family member at an inflated price while earning a commission. The case study shows how LexisNexis®` due diligence attributes improved the effectiveness of the financial services provider`s customer due diligence program by allowing the firm to easily and effectively identify relevant compliance risks with targeted attributes at the beginning of customer engagement and perform ongoing monitoring throughout the customer relationship. To learn how we can help your business achieve more effective customer due diligence, please read the full case study. What made this discovery so important is that the prosecutor would have discovered this outrageous allegation within days of submitting the expert`s name through the same search. Needless to say, we withdrew our «expert» from the case and looked for another verifiable and qualified advisor. Due diligence investigations do not always involve financial transactions. Lawyers require background research for expert witnesses because it is reasonable and prudent to know something about a potential witness. One of our clients regularly requests a brief background check on the witnesses he testifies.

This is a national search for arrests and litigation in the county(s) where the witness lives or has lived. The value of a merger or acquisition often depends on the potential value and risks associated with the intellectual property (IP) of the target company. However, the value and risks associated with the target`s IP can also help define how «engaged» you want to become with the target. As mentioned in our May issue of TIPPs, the key points to consider when navigating due diligence are: Urgent was hired and needed to expedite the scaling of resources and the onboarding process to ensure deadlines were met. Exigent collected in-scope agreements from 60 target companies and conducted first-level reviews of customer, lease, and supplier agreements that supported the seller`s legal due diligence. Working with Imperial Logistics` legal team and its third-party legal provider, Exient`s team also managed the virtual data room (accessible to six different parties) and the associated integration with legal, financial and tax due diligence investigations. Exigent leveraged its existing relationship with a large data room service provider to offer good prices and manage the process seamlessly. By conducting rigorous on-site legal project management, Exigent helped facilitate the due diligence process for Imperial Logistics. Me: «So you didn`t do your own due diligence?» The client packed our due diligence report with the accompanying accounting and legal due diligence reports so that our report was formatted to be consistent with those reports and in language that investors could understand. In the case of Sprock Co., we informed the client of the legal and tax risks uncovered by our investigation and recommended steps the company could take to reduce inconsistencies in its books.

Through broader disclosure of target information, Sprock Co. was able to better assess the risks associated with the acquisition and make an informed decision. Sprock Co. then renegotiated its agreement with Sino Sprock based on information from our research. As a giant in the logistics sector, Imperial Logistics is highly vulnerable to market pressures such as fuel costs at its main hubs in Europe and Africa. Given the vulnerability to the global economic and socio-political environment, combined with activity in a highly competitive sector, the company must be vigilant when it comes to managing thousands of contracts around its M&A strategy. The capacity of the entire company is limited, and as several deadlines for a big deal approached, additional help was needed. Imperial Logistics needed a partner who could perform initial due diligence, manage the process, and review target companies in a short period of time. Me: «Let`s take a step back. What specific due diligence have you done on them? Due diligence is an integral part of the sales process, and Kroll`s clients rely on our regulatory and compliance expertise to provide peace of mind to potential buyers. That`s exactly what Kroll delivered when we were tasked with the sale of a large business services company with offices in the Crown Dependencies and the Caribbean.

Kroll`s team based in the Channel Islands acted as a single point of contact for the client, while Kroll`s international team combined on-site office visits with comprehensive governance, compliance and risk frameworks to produce a detailed report. Working closely with the firm`s staff and local jurisdictions, Kroll compared each office with internationally recognized best practices and a relevant peer group in each jurisdiction. The Kroll team also provided independent, real-time assessments and feedback to key customer representatives to identify any strengths or weaknesses that were ultimately included in the report. Kroll produced a clearly structured practical report, and the team then held discussions with investors to address issues or interests. Project Results Through Kroll`s work, we provided a CDD solution that helped FI immediately increase its presence in the consumer banking industry without taking unnecessary risks. Working closely with the financial services firm, our team customized a CDD solution that accurately reflected the company`s risk appetite and was designed to scale effectively as the financial services company gained additional market share in the consumer banking segment. The case study describes how LexisNexis®` due diligence attributes played a critical role in the financial services provider`s CDD strategy by simplifying real-time screening and helping the compliance team make risk-based decisions and actively avoid potential and costly risks to clients. LexisNexis®` due diligence attributes allowed the institution to focus on targeted risk categories and link specific risks to clients/candidates by leveraging LexID® and personally identifiable information (PII) to accurately trace actionable data information back to a specific identity. The solution increased integration efficiency while ensuring better consistency of decisions by highlighting relevant risk information that enabled internal compliance teams: When you begin the due diligence process, it is wise to have a checklist of information and documents that can be requested from the other party. For example, if your company acquires or merges with another company, you need to review and analyze things like the target company`s business records, finances, agreements, insurance policies, compliance policies, intellectual property, licenses/permits, leases, assets, liabilities, claims, and litigation (among others). When buying a property, you need to understand potential risks such as ownership, zoning and environmental concerns, as well as any maintenance or structural issues that may arise with the property. During a phone call with the target company`s lawyer, we received information about the company`s previously filed (and expired) preliminary patent applications and their plans to file several new applications shortly.

Following the first call for proposals, the Court examined new and existing applications and found that there were certain problems concerning the patentability of applications in the light of current case law. When the company`s legal counsel was asked about these concerns during a follow-up interview, he confirmed our concerns that the claims would likely have to be relatively narrow and tailored to a particular embodiment in order to achieve patentability.