Due Diligence Ready
Are you looking to get a new investor or to apply for a big loan? Get ready for the funder’s legal due diligence assessment in good time.
We’ll help you make sure that no so-called red flags that could bring the funding talks to a complete halt will arise in the assessment.
from
€ 6,690
+ vat
Ask about our risk-free invoicing and only pay once your company’s funding situation improves. *
Avoid red flags in funding talks
Almost every growth-oriented small and medium-sized enterprise will eventually need to secure new funding. Whether it’s a stock issuance, a loan, or another form of financing, the greater the funding need, the more closely the funder will scrutinize your company’s legal risks. Professional investors, lenders, and other financiers use lawyers during the due diligence process to review various aspects of your company’s legal risk management.
If the review reveals so-called red flags—that is, significant legal risks—this could halt funding negotiations entirely. Even if the financier decides to proceed, poorly managed risks typically affect your share value, interest rate or other risk premiums.
Start-ups rarely take all legal risk management requirements into account. As the company grows, issues that were neglected at the beginning begin to snowball. It’s a good idea to address the most significant problems well in advance, before funding talks begin.
You get these benefits
- Professional risk assessment: We will review the risk areas of your company that the funder’s lawyers will later examine. We focus on the areas that are routinely assessed in a professional legal due diligence review. We will provide you with a risk report that includes recommendations for corrective actions.
- Effective measures: The risk report prepared by our legal experts includes clear instructions on how to address the identified risks effectively and cost-effectively. Depending on the service level you choose, the service package also includes a certain amount of active guidance on taking the appropriate steps.
- Tackling red flags: We’ll help you take the right and effective steps to address significant risks. This serves to ensure that the review conducted by the funder’s lawyers won’t raise any red flags—that is, issues that could prevent you from securing the funding altogether.
- Boltering your negotiating position: When key risks are properly managed, this generally has a positive impact on the funder’s risk assessment. This helps ensure better financing terms and a lower risk premium for your company. The financial impact can be enormous in the long term.
- Guidance through the funding process: Our legal experts have extensive experience in funding negotiations for small and medium-sized enterprises. We’ll guide you through each step of the process so you stay informed about what’s at stake and what to consider. We’ll also provide guidance, as needed, on how certain financing terms might affect your and your company’s long-term interests.
- Support tasks: A funding process often requires numerous legal and administrative support tasks, such as drafting corporate documents, facilitating decision-making by the board of directors or the general meeting, and adapting internal processes. Our legal experts will assist you with all support tasks upon request, ensuring that financing discussions proceed without delay. As part of the service package, reduced rates apply to support tasks.
- Cost certainty and transparency: Pay only for results, not for downtime. The package price includes all necessary legal due diligence procedures to help you identify legal risks that could jeopardize your company’s funding application and secure your position in financing negotiations. Our legal experts will provide you with detailed reports on the steps taken and the time spent on them. (Any support tasks will be billed separately on an hourly basis.)
- Flexible invoicing available * : Keep your cash flow healthy with our flexible billing! We can agree to invoice you for the service only after the funding has been secured or your company’s financial situation has otherwise improved. This way, you won’t have to take on any financial risk for the service if the funding is delayed or fails. (* Flexible invoicing requires an approved credit decision.)
The legal due diligence assessment
Legal due diligence refers to a process in which lawyers appointed by a potential funder, investor or other financier review various aspects of your company’s legal risk management. The review aims to determine whether the company has fulfilled its most important legal obligations, managed its key legal risks, and taken other measures to avoid costly mistakes in the future.
The funder’s experts prepare an audit report that typically lists the identified issues according to the risks they pose. The most serious are so-called red flags, which indicate very high-risk omissions, disputes, or other problems.
It depends on the funder whether an investment, loan or other financing is possible if such deficiencies arise. Several funders will immediately suspend negotiations. Although many may proceed with negotiations despite red flags, the elevated risks typically lead to significantly higher interest rates, a requirement for a larger equity stake, or other risk premiums. The long-term financial consequences for you and your company can be enormous. Therefore, it is very important to address serious legal issues well in advance of financing negotiations.
A legal due diligence review typically covers the following areas, among others:
- Corporate law obligations and risk management (e.g., shareholder agreements, shares, articles of incorporation, registrations)
- Human resources matters (e.g., employment contracts, status of workers, employer obligations, occupational safety, occupational health, whistleblower protection)
- Contract risks (e.g., contract templates, long-term and large commitments)
- Supply chain risks (e.g., vendor lock-in, third-party intellectual property infringements)
- Compliance risks (e.g., anti-money laundering obligations, licensing obligations, sanctions compliance, consumer protection obligations)
- Data protection and privacy obligations
- Information security, cybersecurity, and AI safety
- Physical safety obligations (e.g., product safety, machine safety)
- Intellectual property protection (e.g., license agreements, registrations)
- International business risk management
- Corporate governance and good corporate management
- Insurance and financial risk management processes
- Disputes, warranty obligations, and breaches of risk management
- … and many other matters.
An experienced legal expert knows the best way ahead
A growth entrepreneur may find themselves facing a significant funding round unexpectedly. If you have no prior experience with the process, its scope, complexity and even length may come as a surprise.
It is important that you have a legal expert on your side who understands how the process works and knows what to focus on. The lender’s lawyers do not look out for your best interests; in fact, they may sometimes even act against them.
When our experienced legal experts help you identify and address legal risks, your position in funding negotiations is significantly stronger. And when everything is in order, the process proceeds as smoothly and quickly as possible. This ensures you secure funding without delays, before your cash flow situation becomes critical.
Prices
Choose your service level
Start Up
Scale Up
Grow
Funding objective
at most € 1,500,000
Funding objective
at most € 4,000,000
Funding objective
at most € 10,000,000
(larger amounts upon agreement)
€ 6,690
+ vat
- Perfect for Seed or bridge funding
- Core legal due diligence risk assessment
- Legal risk report
- Risk correction instructions
- Active guidance 5 h
- Support tasks € 269 /h + vat
- Conditional billing available (ask more)
— OR —
€ 11,990
+ vat
- Perfect for Series A funding
- Full legal due diligence risk assessment
- Legal risk report
- Risk correction instructions
- Active guidance 15 h
- Support tasks € 199 /h + vat
- Conditional billing available (ask more)
— OR —
€ 19,490
+ vat
- Perfect for Series B or C funding
- Full legal due diligence risk assessment
- Legal risk report
- Risk correction instructions
- Active guidance 37.5 h
- Support tasks € 169 /h + vat
- Conditional billing available (ask more)
— OR —
Prices
Choose your service level
Start Up
Funding objective
at most € 1,500,000
€ 6,690
+ vat
- Perfect for Seed or bridge funding
- Core legal due diligence risk assessment
- Legal risk report
- Risk correction instructions
- Active guidance 5 h
- Support tasks € 269 /h + vat
- Conditional billing available (ask more)
— OR —
Scale Up
Funding objective
at most € 4,000,000
€ 11,990
+ vat
- Perfect for Series A funding
- Full legal due diligence risk assessment
- Legal risk report
- Risk correction instructions
- Active guidance 15 h
- Support tasks € 199 /h + vat
- Conditional billing available (ask more)
— OR —
Grow
Funding objective
at most € 10,000,000
(larger amounts upon agreement)
€ 19,490
+ vat
- Perfect for Series B or C funding
- Full legal due diligence risk assessment
- Legal risk report
- Risk correction instructions
- Active guidance 37.5 h
- Support tasks € 169 /h + vat
- Conditional billing available (ask more)
— OR —
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