Preparing for due diligence from a potential investor or buyer can require a great amount of time and resources. However, for a deal to be successful, it is important that provide thorough due diligence report verifying your company’s net worth, among other things, on time.
A large part of proving your company’s net worth includes an accurate, detailed overview of your assets. As a CEO, CFO or Legal Counsel, you probably have most of this information on hand, but it is unlikely to be in a digital format that is easy to report on and share electronically or print out.
Taking real estate information for example. How quickly could you provide the following items?
- Summary of real estate assets owned or leased, including expiration and material terms
- Copies of all agreements concerning purchase or lease of real estate assets, including documentation regarding mortgages and tax appraisals
- Summary of equipment owned or leased and the expiration date and material terms
- Copies of all material agreements concerning the management and/or operation of properties or facilities, including joint venture or partnership agreements.
What about intellectual property? Are the following items easily accessible to you? Or would you have to wait on colleagues, risking delays in providing the documentation?
- A schedule of all material patents, patent application, trademarks, service marks, trade names, brands, designs and copyrights and any license agreement relating to any of the foregoing and any pending applications relating to such assets.
- Any licenses or agreements of any kind with respect to the company’s or others’ patent, copyright, trade secret or other proprietary rights, proprietary information or technology
While Real Estate and IP information are both crucial for estimating your company’s net worth, other types of assets such as cash, investments, accounts receivable and inventory will help paint the full picture. We have created a simple due diligence checklist to help you assess your readiness to providing the necessary legal documentation.
Download your free copy of the “Beginners Guide to Due Diligence” here.
Many legal counsels are turning to legal software like effacts to aid them through the due diligence process. Being able to generate summaries and factsheets on data like contract values, business registrations, addresses, dates of acquisition, and expiration dates can save you wasting hours sorting through contracts or spreadsheets. What’s more, you can compile, present and share legal information quickly and securely, making the company more attractive to a potential investor or buyer. For more information on how effacts can help you consolidate all your legal information – from contracts, cases, real estate, IP, policies, and more – and become a more efficient in your role, schedule a personalized demo today.