Buyers Beware: Relaxing Due Diligence Could Be Fatal
April 22, 2010, 5:46 PM EDT
Law360, New York (April 22, 2010, 5:46 PM EDT) -- Reliance on representations, warranties or other contractual provisions as a substitute for due diligence in a merger or acquisition can be fatal. Under the current economic circumstances, continued — if not even greater — scrutiny should be applied, as motivated sellers may push the limits in order to maximize proceeds from such transactions.
Prudent buyers, and their attorneys, should ensure a due diligence review of a target company includes a thorough assessment of the following six areas.
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