Diligence This Report Aims to Term Paper

Powers of attorney on any matter.

List of banks or other lenders with whom a financial relationship exists

Credit agreements, debt instruments, security agreements, mortgages, financial or performance guaranties, indemnifications, liens, equipment leases or other agreements evidencing outstanding loans

List of major clients and their locations.

Litigation with Summary of disputes with suppliers, competitors, or customers Decrees, orders or judgments of courts or governmental agencies or settlement documentation.

A management organization chart with biographical information

List of negotiations with any group seeking to become the bargaining unit for any employee

All employment and consulting agreements, loan agreements and documents

CC:

Re: Legal Due Diligence Checklist

Upon completion of the review associated with the Legal Due Diligence Checklist this memo is to provide our recommendation against an investment in the Newco Company with the rationale of the recommendation.

First and foremost, we found through the application of the legal due diligence search, several points of concern which leads to a recommendation of not investing in the Newco venture. There were several compliance issues and the confidentially agreements were not signed by the five holding partners. Through additional research, it was discovered that the five partners were not forthright regarding the company's asset, stock distribution.In addition, this organization, although it has mangers with some experience, has not properly prepared future forecasts regarding employee and union employee management based on historical aspects of this particular industry and with a company in this particular stage of the business cycle.

The key is that the company is very early on in its preparation and has therefore not been able to properly prepare for future business and legal needs. It is our recommendation that this opportunity be reevaluated after the organization has refined its business plan, has recruited a better or more experienced management team and has established a better product and service customer sales base.

Finally, an additional recommendation would be to have a more detailed assessment conducted regarding the business arrangement. Traditionally, once a sound management team is established, it may be a viable option to move to more of a silent backer position where the new management team is focused on the operations of the company and the committee focusing on the investment. It may not be in the company's best interests if the committee wants to be involved in all key of the decisions as opposed to providing guidance and expertise from afar.….....