Legal due diligence is buyer-side review of the target’s corporate structure, material contracts, IP, employment arrangements, regulatory compliance, litigation history, and other legal exposures. The output is typically a written report, sometimes structured as an issues-only or red-flag report, identifying matters that warrant negotiation in the share sale or asset sale agreement (typically through specific indemnities, conditions precedent, or price adjustments).
In Australian sub-$20M deals, legal due diligence costs typically range from $40,000 to $120,000 depending on complexity and document volume.