Most due diligence in M&A transactions revolves around the buyer seeking information from the seller, rightfully so. It is also important that the seller conduct due diligence on the buyer. Whether a buyer is a strategic or financial buyer, the seller should verify that the buyer has the financial wherewithal to complete the transaction and that there are no pending legal or governmental actions against the buyer that could jeopardize the transaction. Especially with regard to strategic buyers, the seller should obtain information to verify the operational strength of the buyer, including the buyer’s customer concentration, vender concentration, product diversification, target market and the buyer’s key performance indicators. Completion of this limited due diligence on the buyer can confirm to the seller that the transaction will be successful or act as a warning sign that the deal is not meant to be.
If you have any questions about this or any other M&A issue,
please contact Glenn Solomon at firstname.lastname@example.org or 443-738-1522.
ABOUT GLENN D. SOLOMON
email@example.com | 443-738-1522
Glenn D. Solomon is a principal at Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years. He has extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.
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