Company Due Diligence in Malta

Foreign investors wanting to enter in business with a company or purchase a company in Malta are advised to appeal to a professional firm that will perform due diligence procedures before concluding a contract in order to verify the company’s legal and financial background. Company due diligence is an investigation effectuated on a compnay on behalf of a person or another company with the purpose of reducing potential risks when engaing in business activities.

Types of due diligence procedures in Malta

Company due diligence in Malta can be performed depending on what the investors want to find out. Maltese company due diligence is divided into:

• -       commercial due diligence on the implemented business pattern, target industry or market,
• -       financial due diligence performed on the economic status of a company,
• -        legal due diligence performed on the legal status of a company.

Our Maltese lawyers can perform the type of company due diligence our clients request.

Why is due diligence required in Malta?

The purpose of due diligence in Malta mainly depends on what the client's demands regarding the situation of a company. Due diligence is usually performed when investors require relevant information regarding a company they will engage in business with in order to have clear knowledge about the risks they are exposed to and if any precautions are needed.

Company due diligence is also performed when concluding a contract or making a purchase from a company. Maltese company due diligence is also employed when buying a company and details such as possible litigation or employment disputes need to be made aware of.

The legal due diligence in Malta

Nowadays, shareholders also perform due diligence processes on their own company. Legal due diligence is often employed in Malta by companies that want to evaluate thier business in order to increase market visibility and strenghten the ties with existing customers. Depending on the type of due dilgence, the process can be short requiring only few days or complex, case in which it could expand on a longer period of time.

If you want to buy a company or set up a business, you can contact our Maltese law firm.