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Due Diligence Engagement Letter Template for Denmark

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Key Requirements PROMPT example:

Due Diligence Engagement Letter

I need a Due Diligence Engagement Letter under Danish law for our law firm to conduct comprehensive due diligence on a technology company acquisition target, with completion deadline of March 2025 and specific focus on IP rights and data protection compliance.

What is a Due Diligence Engagement Letter?

The Due Diligence Engagement Letter is a crucial document used when a company or investor requires professional services to investigate and evaluate a target business, property, or asset. This document, structured under Danish law, formally establishes the relationship between the investigating firm and the client, detailing the scope, methodology, and deliverables of the due diligence process. It is commonly used in mergers and acquisitions, significant investments, or major business transactions where thorough investigation is necessary. The letter must comply with Danish regulatory requirements, including professional services regulations, data protection laws, and anti-money laundering provisions. It typically precedes any significant transaction and serves as the governing document for the entire due diligence engagement, protecting both the service provider and the client by clearly defining expectations, limitations, and responsibilities.

What sections should be included in a Due Diligence Engagement Letter?

1. Letterhead and Date: Professional firm's letterhead, including contact details and date of the letter

2. Recipient Details: Full name and address of the client company and specific contact person

3. Subject Line: Clear identification of the document as a Due Diligence Engagement Letter and the target company/transaction

4. Introduction: Opening paragraph identifying the parties and confirming the engagement request

5. Scope of Services: Detailed description of the due diligence services to be provided, including areas of investigation

6. Timeline and Deliverables: Expected duration of the engagement and format/nature of deliverables

7. Fees and Expenses: Fee structure, billing arrangements, and treatment of expenses

8. Team Structure: Key team members and their roles in the engagement

9. Confidentiality: Confidentiality obligations regarding the engagement and findings

10. Liability and Limitations: Professional liability terms and any limitations of liability

11. Client Responsibilities: Expected cooperation and information provision from the client

12. Closing and Signatures: Formal closing, signature blocks, and acceptance provisions

What sections are optional to include in a Due Diligence Engagement Letter?

1. Conflict Checks: Section addressing potential conflicts of interest, used when there are multiple parties involved or potential conflict situations

2. Third Party Access: Terms governing access to due diligence findings by third parties, used when other parties may need access to the results

3. Document Retention: Specific terms about retention of work papers and documents, used for complex engagements or when required by regulations

4. Insurance Coverage: Details of professional insurance coverage, included when specifically requested by client or for high-risk engagements

5. Termination Provisions: Detailed termination clauses, included for longer-term or complex engagements

6. Use of External Experts: Terms governing the engagement of external specialists, included when specific expertise might be needed

7. Data Protection Specifics: Detailed GDPR compliance provisions, included when significant personal data processing is involved

What schedules should be included in a Due Diligence Engagement Letter?

1. Schedule 1: Scope of Work: Detailed breakdown of due diligence areas and specific items to be reviewed

2. Schedule 2: Fee Schedule: Detailed fee structure, including hourly rates, estimates, and payment terms

3. Schedule 3: Team Structure: Detailed organization chart and CVs of key team members

4. Schedule 4: Timeline: Detailed project timeline with key milestones and deliverable dates

5. Schedule 5: Information Requirements: List of documents and information required from the client

6. Appendix A: Standard Terms of Business: Firm's standard terms and conditions

7. Appendix B: Document Request List: Comprehensive list of documents required for the due diligence

8. Appendix C: Reporting Template: Sample format of reports and updates to be provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions































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Relevant Industries

Legal Services

Financial Services

Professional Services

Manufacturing

Technology

Real Estate

Healthcare

Energy

Retail

Transportation

Telecommunications

Construction

Private Equity

Venture Capital

Insurance

Banking

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Risk Management

Compliance

Investment

Corporate Strategy

Due Diligence

Transaction Advisory

Executive Management

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Director

Corporate Development Director

Mergers & Acquisitions Director

Investment Manager

Due Diligence Manager

Risk Manager

Compliance Officer

Partner (Professional Services)

Director (Professional Services)

Transaction Advisory Manager

Investment Analyst

Legal Counsel

Financial Controller

Business Development Manager

Corporate Secretary

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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