DUE DILIGENCE SERVICES
Whether it is a business or a property you are going to buy, such as a hotel, factory, parcel of land, or a luxury villa, we ensure that you have detailed and accurate information to assist in making the correct decision. The most critical factors in these activities is a thorough due diligence and risk management analysis. Our due diligence service provides comprehensive legal and financial detailed information covering an action plan for each stage of the process.
Phuket is a magnet for foreign investors, and it can come with success or failure depending on several factors. Our due diligence services provide you with all the necessary and important information you need to make an informed decision before a business deal is completed. For risk management, our validation includes legal, financial, tax, and business licenses, as well as valuations. All services are provided by expert attorneys, accountants, auditors, and engineers who are qualified and authorized under the Thai law system.
3 TYPES OF DUE DILIGENCE SERVICES
- Business due diligence
- Property due diligence
- Contract validations
1. BUSINESS DUE DILIGENCE
Business due diligence provides a deep background study of an individual or a business to ensure you know your customer or contracting party and fully understand them. We focus on financial and commercial profiles, including potential legal and financial issues, to advise you of possible risks.
For the business due diligence in Phuket, Khok Kloi and the rest of Thailand, at minimum, the following information requires:
- Full 3 Years Financial statements, not limited to but including, Profit & Loss, Balance Sheet, capital investment and all outstanding liabilities (tax, rent, monthly wage payments). For example in some cases, we found a business with two million capital investment operating a one billion project, which is nearly impossible to complete as described in advertising.
- The business structure includes shareholders and directors, voting, and dividend rights.
- Business reputation, public judgment on goods or services, and lawsuits history.
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2. PROPERTY DUE DILIGENCE
Purchasing a property in Phuket, Khok Kloi and the rest of Thailand is very popular with foreigners, especially condos, villas and yachts. In some Western countries, when transferring ownership of property like real estate, the law obliges the parties to use the services of a public body or representative to protect the buyer by making due diligence compulsory.
Unfortunately, such a system is not applicable in Thailand, and due diligence needs before a transaction, a minimum of property due diligence are as follows.
- Ownership and legal status of the property including registration documents, title deed, bordering, access (easement rights or servitude), zoning, and building permit. For condominiums, the license must be verified to ensure that freehold and leaseholder rights can be registered for legal protection.
- Encumbrances, to be sure that the property is free and clear of any liens, pledges, claims, and any other limitations.
- Possible legal matters and legal execution in relevant like unresolved legal disputes.
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3. CONTRACT VALIDATIONS
Ensuring that all contracts are legally binding under Thai law, also international law in case of international trade, whether the sale of goods or services. To prevent the possibility of voiding the contract. The minimum contract validation requirements are as follows:
- Legal capacities, for example the authority needed to enter into a deal. So to make a deal with a minor or married person there are some transactions requiring the content of a related person or court order to approve the transaction.
- Contract objectives must not be prohibited by the law, especially public order, good Thai morals, or impossible to execute.
- Compulsory forms set forth by law include a verbal contract, written contract, or registration at the relevant government office.