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).
The scope and cost depend on the business, document volume and issues requiring review. Agree the deliverables, scope and fee before the work starts.