Due diligence

Diligence is where every claim gets tested. The buyer and their advisors examine the financial records behind the adjusted earnings, the contracts, the leases, the employment arrangements, the tax filings and the customer relationships. It usually runs on a request list, with documents delivered into a data room. Most deals that fail, fail here, and usually because something surfaced late that should have surfaced early.

• Data room
• Discretionary earnings add-backs
• Letter of Intent (LOI)
• Quality of Earnings (QoE)

• 3 Ways to Avoid Costly M&A Delays and Deal Failure
• 7 Due Diligence Fundamentals You Must Know
• Deal Killers: Undisclosed Liabilities
• Don't go in the Basement! Escaping M&A “DEAL KILLERS”