Management Clinic - Due Diligence: What's in the box?
We have the opportunity to make our first acquisition of any size and it looks like a good fit. How can we be sure of what we are buying?
There is a two-word answer: due diligence. If you are borrowing money to finance the deal, the lending source will want to be as equally assured as you that the target firm is indeed what it has told you it is.
Statutory regulatory issues aside, the following represents the practicalities that you should be aware of.
It is true to say that in the past many deals were done because a dominant board member wanted to do the deal. These days, people need to be more sanguine or circumspect and ensure
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