• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Legal Due Diligence Checklist: NewCo Company

Extracts from this document...

Introduction

Legal Due Diligence Checklist: NewCo Company Peter Giannoulis Law 529: Legal Environment of Business Instructor: Carol Parker Wednesday, May 25, 2005 Legal Due Diligence Checklist: NewCo Company Our venture capital firm aspires to invest in newborn companies such as NewCo, who coupled by a driven team of managers can develop the company into a notable economic contributor. The assistance of venture capital will automatically advance the equity value of the emerging NewCo Company. In order to consider investing into the NewCo Company, our venture capital firm will meticulously examine the business and technical merits of this organization. Initially, we will review the market demand for the service or product offered by the proposed company. Additionally, we will check the history of the founders of the company, particularly in the area of finance in previous business enterprises. Furthermore, we place great importance in investigating the immediate competition that the proposed company will face when entering the market. Next, representatives from the venture capital firm will conduct discussions with primary customers to the company. ...read more.

Middle

"Litigation 1. Copies of any pleadings or correspondence for pending or prior lawsuits involving the Company or the Founders. 2. Summary of disputes with suppliers, competitors, or customers. 3. Correspondence with auditor or accountant regarding threatened or pending litigation, assessment or claims. 4. Settlement documentation" (Due Diligence Checklist, 2005). (D) "Employees and Related Parties 1. A management organizational chart and biographical information. 2. Summary of any labor disputes. 3. Correspondence, memoranda or notes concerning pending or threatened labor stoppage. 4. List of negotiations with any group seeking to become the bargaining unit for any employees. 5. All employment and consulting agreements, loan agreements and documents relating to other transactions with officers, directors, key employees and related parties. 6. Schedule of all compensation paid to officers, directors and key employees for most recent fiscal year showing separately salary, bonuses and non-cash compensation (i.e. use of cars, property, etc.). 7. Summary of employee benefits and copies of any pension, profit sharing, deferred compensation and retirement plans. ...read more.

Conclusion

Taking the above factors into consideration will account for a small percentage for predicting the success of the proposed company (Business Angels Network, 1999). The onus is to avoid dealing with companies that have demonstrated ethically, socially or environmentally irresponsible organizations in the past. The venture capital firm will use the due diligence checklist before an official commitment is made, to provide a safeguard against a company with past criminal activity, a company induced with corruptive practices, a company with damaged reputation (socially and financially), and a company with breaches of legislation. In essence, due diligence will predict the future of the company once the deal has closed between the proposed company and the venture capital firm. An investigative firm such as ours will do a thorough job to avoid any future surprises from the acquisition, thereby approving a company that presents opportunities for synergies, innovative research and development and dispersions to a wider array of the market. Becoming familiar with a company's history is a key component of making a constructive and secure decision that will be tailored to the needs of NewCo and our firm. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Finance essays

  1. BAAF Accounting & Finance/ ACCA Professional Accountancy Course

    Below it can be seen group profits grown of the last 5 years at a very strong and consistent rate. Group operating profit £m Year 1,322 2002 1,492 2003 1,778 2004 2,064 2005 2,280 2006 Source: Five year record, Tesco 2006 Annual report, p102 UK Core Business UK Operating Profit

  2. This group assignment of Financial Management will assess the positions financial performances for six ...

    49 60 N/A ACCOUNTS RECEIVABLES DAYS #NA 51 51 54 56 57 58 56 51 59 N/A ACCOUNTS PAYABLE 21012 17800 18997 21285 24373 14843 19243 18317 15616 17294 N/A NET SALES OR REVENUES 183689 161740 164878 175812 186482 180968 188338 193115 220329 213405 N/A OPERATING INCOME 16757 16435 15389

  1. OUTLINE OF BUSINESS PLAN - opening a caf.

    This will help attract customers from neighboring areas. I will now look at the people living and working in the area, their health and employment status to find out if Greenwich as a location is suitable for my business. RESIDENT POPULATION Resident population (%)

  2. Executive Summary

    They emphasize the firm's philosophy on Teamwork, Integrity, Responsible Citizenship, Respect for the Individual, and Client Focus. 1995 - Launching a global spree, Merrill acquires Smith NewCourt in the U.K. and later buys operations in Japan, South Africa, Spain, Canada, and Australia.

  1. Case Analysis Southwest Airlines Co.

    * Maintain competitive edge by sticking to one type of plane, the 737. * Serve only drinks and peanuts * Maintain quick turnaround times in order to minimize the number of aircraft out of service. 3. Strategies * To provide high frequency, short-haul, point-to-point, low-fare service.

  2. Hampton Machine Tool Company

    However, the bank should undertake further studies and collect more data, to permit a better decision. I. Statement of the Problem Should St. Louis National Bank accept the request of Hampton Machine Tool Company to refinance its $1,000,000 loan and to lend Hampton an additional $350,000 for equipment acquisition, both payable on December 31, 1979?

  1. Skerries Nursing Home - Business plan.

    All rooms are equipped with a medical bed, an overhead light, a telephone, a multi channel TV and a modern Nurse Call system that is within reach. Common rooms Smoking and non-smoking areas, where residents can watch TV, listen to the radio, read or just chat.

  2. A Comprehensive Study of Credit Control in Banking Industries With Special Reference to ICICI ...

    ⢠Everyday credit control. ⢠Chasing debts. ⢠Coping with other companiesâ bad habits. 1. CHECKING FOR CREDIT Is a customer likely to go out of business, leaving you unpaid? Will a customer delay payments, wasting your time as you chase the money? Checking references lets customers know you are serious about credit control.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work