Due Diligence
Due Diligence for International Investments
Maital Ben-Baruch Law Offices specializes in providing comprehensive legal support to businesses, startups, and companies seeking to raise capital from foreign investors, including managing a thorough and professional Due Diligence process.
What is Due Diligence, and why is it important?
Due Diligence is a comprehensive process in which potential investors carefully examine the company they are considering investing in. Its purpose is to ensure that the company is stable, lawful, and profitable while identifying potential risks.
Without a structured Due Diligence process, investments could lead to significant losses, legal disputes, or even the cancellation of the transaction. Therefore, a company interested in raising capital must prepare in advance and ensure that all its documents and data are transparent and ready for review.
When is Due Diligence required?
✔ Raising capital from private or institutional foreign investors—including venture capital funds, angel investors, and investment firms.
✔ Acquisition or merger with a foreign company—financial and legal inspections before completing the transaction.
✔ Entering a strategic partnership with international entities—assessing the company's actual status and value.
✔ Signing an investment agreement—before transferring funds to or receiving funds from an investor.
Stages of the Due Diligence Process
1. Review of Corporate and Legal Documents
- Articles of incorporation and founders' agreements.
- Shareholder agreements and previous investment contracts.
- Ownership structure and voting rights.
- Company registration and compliance with international regulations.
2. Financial Review
- Audited financial statements and revenue history.
- Liabilities, debts, and credit agreements.
- Cash flow and financial forecasts.
- Alignment of financial statements with business reality.
3. Regulatory and Tax Inspections
- Compliance with local and international tax laws.
- Identification of outstanding tax obligations or disputes with foreign tax authorities.
- Specific regulatory compliance relevant to business operations (GDPR, SEC, etc.).
4. Intellectual Property Assessment
- Registration and protection of patents, trademarks, and copyrights.
- Non-disclosure and non-compete agreements with employees and partners.
- Intellectual property related to key company technologies.
5. Review of Commercial and Operational Agreements
- Contracts with suppliers, customers, and business partners.
- Existing commitments under long-term agreements.
- Risk analysis based on future contractual obligations.
6. Human Resources and Risk Management Checks
- Employment contracts and management compensation structures.
- Employee option agreements and compensation policies.
- Potential legal claims against the company (employment disputes, terminations, etc.).
7. Market and Competitive Analysis
- Assessment of the company's position within the market.
- Competitive landscape and potential threats.
- Future growth potential and strategic opportunities.
8. Operational Infrastructure Review
- Analysis of the company's operational infrastructure and capabilities.
- Technological infrastructure assessment.
- Identifying operational risks and opportunities for improvement.
9. Environmental and Social Governance (ESG)
- Compliance with ESG standards and practices.
- Environmental impact assessments and sustainability strategies.
- Social responsibility policies and their implementation.
How Can Our Firm Help?
Meital Ben-Baruch Law Firm provides comprehensive legal services for the Due Diligence process ahead of foreign investment:
- Legal consultation for negotiations with investors: Expert guidance in negotiations with foreign investors.
- Comprehensive legal and financial inspections: Risk analysis of legal and tax issues.
- Regulatory support tailored to international legal requirements: Ensuring compliance with global regulatory demands.
- Legal advisory for negotiations: Legal support in interactions with foreign investors.
- Extensive legal and financial audits: Analysis of legal and tax risks.
Why Choose Us?
Our firm specializes in legal support for international investment transactions, backed by extensive experience working with venture capital funds, private investors, and multinational corporations. We offer personalized, thorough, and precise services, emphasizing responsiveness, meticulous attention to detail, and accuracy.
We provide meticulous, comprehensive Due Diligence services, combining legal expertise with strategic business insights. Our approach ensures transparency, minimizes risks, and facilitates smooth transactions, enabling you to focus confidently on your business goals.
Contact Us
For a thorough, efficient, and transparent Due Diligence process, contact us today!