Legal Due Diligence

Prior to the finalization of transactions involving the acquisition of businesses or specific assets, the acquiring party typically needs to have a due diligence report prepared. The due diligence report is not merely a snapshot of the current condition of all legal aspects related to the operations of the acquired undertaking; it is an effective instrument used to identify existing or potential problems, to make an assessment of the related risks, and to ensure risk coverage on a contractual basis. The latter is achieved through a set of specific representations and warranties given by the seller and obligations to fulfill certain actions or meet certain conditions set in advance so that to remove the existing irregularities. The due diligence report is a prerequisite for the investor to make an informed investment decision. Therefore PM&P attaches great importance to the accurate due diligence reports prepared by experienced teams.

Depending on the scope and structure of the would-be transaction, the due diligence report can either cover all aspects of the business operations or be limited to the examination of specific issues or even individual assets. The PM&P team has its in-house due diligence model which encompasses all legal issues pertaining to the operations of the undertaking. The model is adjusted to each specific case in order to guarantee the review of its peculiarities or to emphasize on the most essential issues of the business and/or the transaction.

PM&P has an impressive track record in the preparation of due diligence reports on businesses in various economic sectors, starting from the due diligence reports related to the privatization process of some of the biggest state-owned companies (BTC, Bulgartabac Holding, the Bulgarian Maritime Fleet, the Bulgarian River Fleet, the State Insurance Company and many others) and going all the way through to the acquisition of private businesses and parts thereof.

More often than not, in real estate development transactions (including the acquisition and development of built-up sites or greenfield investment, farmland and industrial properties) and occasionally projects which involve renewable energy sources (depending on the phase of the project implementation), PM&P offers limited due diligence reports focused on real estate ownership rights or specific features of the ongoing project with a view to protecting the guarantees and security of its clients.


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“At present the firm has 57 partners, associated members and external legal advisors and eight trainees, as well as 22 assistants and other staff. This ensures that up to 15 – 18 lawyers can be involved in a specific project without disturbing the general course of the firm’s work.“