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by Undo Capital
December 15, 2025
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What Is Legal Due Diligence?

Legal due diligence is the detailed legal review of a company’s structure, contracts and compliance carried out before an investment, acquisition or major transaction.

Legal Due Diligence Meaning

The legal due diligence meaning centres on identifying legal risk before capital is committed. To define legal due diligence in practice, it includes reviewing the company’s Articles of Association, shareholders’ agreements, IP ownership, employment contracts, litigation history, regulatory compliance and key commercial agreements. A clear legal due diligence definition protects investors by uncovering issues that could affect valuation, ownership or future operations. For founders, it stands for preparedness and credibility, ensuring the business is legally sound and investment-ready.

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Disclosure Notice: This communication is issued by Undo Capital Limited (“Undo Capital”) and is provided strictly for informational purposes only. It contains general information and should not be relied upon as accounting, business, financial, investment, legal, tax, or other professional advice. Undo Capital is not regulated by the Financial Conduct Authority (FCA) and does not provide investment, financial, or tax advice. Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. Nothing in this communication constitutes, or should be construed as, a recommendation, offer, or solicitation to purchase or sell any security or financial instrument.
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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.