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Browse our 1 legal question about Due Diligence in Philippines and the lawyer answers, or ask your own questions for free.
Due diligence is a comprehensive appraisal procedure undertaken by a potential buyer, particularly in respect to a business, to establish its assets and liabilities and evaluate its commercial potential. Due diligence in Bulacan, Philippines is not different; typically, it involves reviewing documents, conducting interviews, and making inspections related to the business or transaction in question. It could be carried out in mergers and acquisitions, real estate transactions, and various investment transactions. The Philippines laws do not particularly define the term 'due diligence' in a general sense, but the principle is recognized across various laws and regulations, including tort, contracts, business, securities, and real estate laws.
You may need a lawyer when you're involved in transactions that require comprehensive examination to identify potential issues or risks. These may include buying a business, investing in a start-up, purchasing real estate, or getting into contractual agreements. A lawyer will understand the laws, business practices, customs, and potential pitfalls in these transactions, providing legal advice and reviewing, drafting or negotiating contracts accordingly. Lawyers are also necessary to ensure legal compliance and minimize or manage business risks.
In terms of due diligence, several local laws in the Philippines apply. The Securities Regulation Code (SRC) requires due diligence in securities transactions. The Corporation Code and the Civil Code determine the obligations and liabilities of parties in contract and business transactions. The Philippine Competition Act requires due diligence in mergers and acquisitions. Moreover, the Intellectual Property Code also highlights the importance of due diligence when dealing with intellectual property rights transactions, among others.
Due diligence in the Philippines serves to unearth any liabilities or issues with a potential business deal, real estate transaction, or investment, thereby avoiding potential legal troubles.
The length of a due diligence process varies depending on the complexity and scale of the transaction. It can range from a few weeks to several months.
If you fail to perform due diligence, you risk incurring losses or liability from business transactions as you may overlook potential issues or liabilities that could affect its profitability or legality.
While in some cases, you may be able to conduct basic due diligence yourself, it's advisable to hire a lawyer or due diligence experts who understand the complexities and legal implications. They can perform a thorough investigation for you, ensuring you are making a safe and informed decision.
Legal issues involved in due diligence may include contract issues, regulatory compliance, intellectual property rights, employment, litigation, environmental liabilities, and other legal risks or exposures relative to the transaction.
You may want to get familiar with the National Law Review for references or visit the Philippines Securities and Exchange Commission (SEC), which regulates corporations and securities transactions. Local entities, such as the Philippines Chamber of Commerce and Industry (PCCI) and the Philippines Financial Reporting Standards Council (FRSC), can also be valuable resources to learn more about due diligence processes and business practices in the Philippines.
If you need legal assistance with due diligence in Bulacan, Philippines, you should seek help from a lawyer or a law firm specializing in business transactions. A lawyer can guide you through the legal aspects of due diligence and ensure you undergo a thorough and effective review that secures your interests.
