Due Diligence

This is an issue which must be considered carefully from both the vendor and purchaser’s perspective.

From a vendor’s perspective, it is appropriate to anticipate the due diligence requirements of prospective purchasers before a business is offered for sale, to ensure a comprehensive due diligence package of information is available at the time the business is offered for sale. This ensures there is a minimum delay in the purchaser and their professional advisors receiving the information required in assessing whether the business is acceptable for their requirements. It may also direct the attention of the vendor to resolve certain issues prior to offering the business for sale to avoid any information being received by a purchaser during the due diligence period.

From the purchaser’s perspective, the due diligence procedure is vital to ensure the bargain they are receiving is what they have originally contracted to purchase. Identifying any issues which require further discussions between the parties, and price adjustment as a result of a careful due diligence examination, will avoid the costs of seeking redress later from a vendor through the expensive and uncertain litigation process.

We believe it is appropriate to form a team of professionals to assist a vendor or purchaser throughout the due diligence period of a transaction to ensure comprehensive advice is obtained on all aspects of a transaction; including assets values, trading history, resource management issues, leasing issues, marketing and competition.

Explore more in this section:

• Business Sales & Acquisitions
• Commercial Property
• Choosing the Right Business Entity
• Leasing including commercial property, chattels, plant & equipment
• Analysing (and minimising) Business Risk
• Shareholder Agreements and Disputes
• Company Structures
• Purchase of a Business
• Due Diligence
• Sale of a Business
• Financial Structures / Funding / Finance
• Creditor Issues
• Solvency Issues
• Liquidations & Winding Up
• Creditor Arrangements

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