Document background
The Due Diligence Engagement Letter is a crucial document in Australian business and legal practice, typically employed when a client requires professional services to investigate and evaluate a business opportunity, transaction, or potential investment. This document is essential for establishing clear parameters for the due diligence process, protecting both the service provider and the client by clearly defining the scope of work, limitations, and expectations. It must comply with Australian legal requirements, including the Corporations Act 2001, professional services regulations, and relevant industry standards. The letter typically precedes significant corporate transactions such as mergers, acquisitions, investments, or major business decisions where thorough investigation is necessary. It serves as both a legal contract and a project framework, outlining the investigation areas, methodology, deliverables, and commercial terms of the engagement.
