Legal Due Diligence in Kenya

Legal Due Diligence in Kenya | Silvana & Associates Advocates

At Silvana & Associates Advocates, we provide proficient, timely, and credible due diligence services for businesses, individuals, and companies across Kenya.

What is legal Due Diligence in Kenya?

Due diligence is a comprehensive assessment of a potential business venture or transaction. It uncovers potential legal liabilities and evaluates the fiscal feasibility of a deal, helping you make informed decisions. Our due diligence services follow a “know your customer/client” approach, ensuring you understand the entity you are dealing with before committing to a transaction.

Key Transactions Requiring Due Diligence:

• Mergers and Acquisitions
• Business Takeovers
• Business Investments
• Real Estate Purchases or Investments
• Issuing Loans or Financial Assistance to Businesses
• Large-scale Projects (e.g., construction)

Types of Due Diligence

1. Corporate/Commercial Due Diligence
2. Financial Due Diligence
3. Legal Due Diligence

Checklist for Corporate Due Diligence

When conducting corporate due diligence on a company, we review:

• Incorporation documentation
• List of directors
• Ownership structure (shareholders and stockholders)
• Company by-laws, articles of association, and memorandum of association
• Board and shareholder meeting minutes (last 3 years)
• Tax documentation, including returns and audits
• Financial records (annual returns, financial statements)
• Contracts with third parties
• Human resource information (organizational chart, employees, job descriptions, salaries, performance)
• Intellectual property (patents, trademarks, copyrights, licenses, franchises)
• Customer lists and transactions to ensure compliance with anti-money laundering laws and identify any potential illegal activities
• Litigation history (pending and resolved cases)

Legal Due Diligence in Kenya

Legal due diligence ensures compliance with relevant laws and assesses the legal standing of a transaction. Key areas reviewed include:

• Legal structure
• Contracts
• Litigation (status and potential impact)
• Compliance with Kenyan laws

Financial Due Diligence in Kenya

Financial due diligence verifies the financial information provided to evaluate the business’s performance, credit health, and viability. This includes an analysis of:

• Cash flow
• Liabilities
• Assets
• Debt
• Earnings
• Management
• Insurance

Why Conduct Due Diligence?

Conducting due diligence is essential to:

• Verify information disclosed during the transaction process
• Identify potential risks or defects in the deal
• Manage transaction risks and reduce investor uncertainty
• Ensure maximum value for the transaction
• Enable more informed decision-making
• Provide buyers with confidence in their expectations

Contact Us

Need legal due diligence services in Kenya? Contact Silvana & Associates Advocates at info@swkadvocates.com or call us at +254 726 328 555.