Newsletter Articles

4 Due Diligence Issues That Warrant Concern

Due diligence is the process of determining whether representations — legal, financial and otherwise — made by a business seller are true and whether the buyer’s proposed bid is fair based on these representations. The purpose of due diligence is to uncover weaknesses or uncertainties that might prevent the transaction from meeting a buyer’s desired goals. In today’s environment, companies considering a merger or acquisition must devote considerable time and energy to performing due diligence. But novice buyers may feel uncomfortable with the process, unsure of what to look for and what might constitute a legitimate “red flag.” That’s why it ...