M&A Activity -- Expect a Surge in Mergers

Due Diligence

Most buyers will require on-site due diligence visits by its management, lawyers and accountants. This task can consume from one to three weeks and is usually exhaustive. The buyer will examine all of the current and fixed assets, internal books and records, contracts, leases, any existing litigation and any unrecorded liabilities. A list of required due diligence materials can number in excess of 100 items. Buyers who find a significant, unreported liability will understandably seek to adjust their offering price.