Legal Audits: Beyond Diagnosis, a Strategic Tool for Risk Anticipation and Intelligent Structuring

In the context of business expansion, asset acquisition, or territorial consolidation, legal auditing, or legal due diligence, is a critical step. However, a merely descriptive analysis of the reviewed documents is not sufficient. A truly effective audit must go beyond the legal inventory: it must identify, assess, and project risks, as well as anticipate the legal actions that could be triggered by the materialization of a contingency.

Many audits stop at listing findings without providing a technical judgment on their impact. This superficial approach can mask threats that, if realized, could significantly affect the value of the transaction or asset. A sound legal audit must proactively interpret the legal significance of each risk, evaluating its severity, likelihood, and legal consequences—whether administrative, judicial, or contractual.

To achieve this level of depth, it’s essential to understand the legal components required for each type of risk. For example:

• In an annulment action, it is crucial to identify defects in consent or procedural irregularities in the legal act’s execution, as well as gather documentary and testimonial evidence supporting those claims.

• In a recovery action (acción reivindicatoria), one must prove full ownership, improper possession by a third party, and the chain of title.

The absence of any of these elements can critically undermine the legal position. Therefore, anticipating the viability of such claims is essential when evaluating contingencies.

This level of legal audit is particularly valuable in real estate transactions, business acquisitions, or institutionalization processes. Unidentified or misjudged risks can result in sanctions, legal disputes, license losses, or depreciation of the asset’s value. Accurate risk assessment enables not only mitigation, but also preventive restructuring, operational model adjustments, and assurance of legal viability in growth strategies.

We have extensive experience conducting legal due diligence for both growing companies and developers seeking comprehensive risk evaluation before acquiring an asset or launching operations. This approach allows us to anticipate contingencies, identify critical areas, and recommend more efficient legal structures. Our goal is not merely to deliver a diagnosis, but to design legal solutions that safeguard and enhance the long-term value of the project.