With respect to merger & acquisition transactions, legal due diligence is the most prerequisite for any individual or corporate entity aiming to engage in such transaction. Be it a national or foreign company in Cameroon, it is necessary knowing the status of the company intended to be merged. Legal due diligence enables the merging or the acquiring companies to be aware of what they are engaging into and further avoid possible scams. Hence, the following should be taken into consideration engaging the transaction;

1. Legality of Corporate Entities

Legal due diligence, enable engaging companies to be sure such entities involved in the transaction are duly registered and are in existence with the Trade & Personal Property Credit Register of Cameroon.

This is backed up by existing documents establishing the said company is existing in Cameroon.

2. Fixed Assets

In merger and acquisition transactions, it is worth noting for engaging parties to make inquiries about the fixed assets of the company. This will help the engaging company to confirm the facts of the existing fixed assets and their existence prior to the transaction.

3. Intangible Assets

This is important as the company has to be aware of the merging or acquiring entity situation with respect to intangible assets. Do the intended company to be merged or acquired have any shares in other entities or insurance policies or are involved in any kind of investment that might jeopardize the transaction and the functioning of the merger?

4. Financial Information

This is a very crucial aspect for companies intending to merge or acquire any legal entity. Legal due diligence in this regard will include financial and bank statements of the company to be merged to be up to date in conformity with the OHADA Uniform Act on acting and financial information. This enables acquirers to be aware of Company's liabilities with other financial institutions.

The risk factor is to avoid scam situations as with the new dispensation of digitalization.

‍