Maritime Business Due Diligence

The principle of caveat emptor (buyer beware) is never more relevant than to those brave souls seeking to purchase a maritime business.

Although there may be some chance of recovery in a circumstance of misrepresentation, it is a much superior commercial strategy to make vigorous investigations into a target business in order to satisfy yourself of its worth and prevent unnecessary losses.

These investigations are known as due diligence, but less fancily are just common sense inquiries. Matters that should be looked into include:

Regulatory and litigation searches on the vendors
Contracts of employment, supply and procurement
Leases or licences over property
Future developments likely to impact on the business
Qualifications required to operate business
Intellectual property
Regulatory and survey status of any vessels
Condition and age of vessels
Schedules of equipment and inventory
Detailed physical inspections
Interviews with employees, competitors, commercial partners

Whether vendor or purchaser, Pacific Maritime Lawyers can guide you through this process.