If I had a pound for every “standard” due diligence questionnaire I have received from a fellow solicitor without them thinking about the nature and scope of that individual transaction, then I could probably afford to go to Australia to see the England Team perform – if my nerves could stand it!
Due diligence:
· is one of the most important parts of any decision to acquire a business;
· is essential and it is necessary to ask all of the right questions and not waste time with those that are irrelevant;
· supports the value of the business and or/the shares being acquired. If the answers are not satisfactory, then a buyer will use the situation to renegotiate the price downwards.
From a Sellers point of view, it is essential that their “house is put in order” prior to commencing a sale. Carrying out a dummy run with their legal and accountancy advisers should highlight all of the areas of weakness and enable plans to be put into place to correct them. This will then enable the Seller to return any due diligence questionnaire raised by a Buyer and his advisers quickly and be supported by concise and accurate documentation. This approach by a Seller should mean that a premium price is achievable.
Once a Buyer has decided to acquire he will use the due diligence information to start planning the post acquisition changes and integration into his existing business. If he can see that the scope and accuracy are high then he will be confident that there will be a successful acquisition.Mobile Blogging from here.
Due diligence:
· is one of the most important parts of any decision to acquire a business;
· is essential and it is necessary to ask all of the right questions and not waste time with those that are irrelevant;
· supports the value of the business and or/the shares being acquired. If the answers are not satisfactory, then a buyer will use the situation to renegotiate the price downwards.
From a Sellers point of view, it is essential that their “house is put in order” prior to commencing a sale. Carrying out a dummy run with their legal and accountancy advisers should highlight all of the areas of weakness and enable plans to be put into place to correct them. This will then enable the Seller to return any due diligence questionnaire raised by a Buyer and his advisers quickly and be supported by concise and accurate documentation. This approach by a Seller should mean that a premium price is achievable.
Once a Buyer has decided to acquire he will use the due diligence information to start planning the post acquisition changes and integration into his existing business. If he can see that the scope and accuracy are high then he will be confident that there will be a successful acquisition.Mobile Blogging from here.
