What Is The Purpose Of Due Diligence – There are four purposes of LDD. First, obtain the legal status of the documents being audited. Second, check the legality of legal entities. Third, examine the level of compliance with legal entities. Fourth, provide legal views on a policy. Apart from these four, the fact is that in practice, legal due diligence (LDD) provides many benefits. In a seminar organized by Hukumonline, SSEK Indonesia Legal Consultants explained that LDD provides many advantages in the process of buying and selling companies. The benefits are not only for sellers but also for buyers.

The intended benefits or advantages for the seller:

1. LDD serves to facilitate the stages and prepare sales of the company;

2. LDD can be used by sellers to fulfill obligations to buyers;

3. LDD can be used as a reminder of the information that has been provided and if a problem arises at a later date, the seller can be released from responsibility;

4. LDD can be used to cover several bad company; and

5. LDD can also be a measure to reflect the company’s current condition, whether the company complies with all regulations or not.

The benefits of LDD for buyers:

1. LDD can be a tool to strengthen target assessment;

2. LDD is a tool for managing transactions and contractual protection needed by buyers;

3. LDD allows potential buyers to know the background of the target or company as best as possible and can be used to measure material facts, contingencies, and liability.

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