Sep 13, 2023
In ABCast Episode 21 - Due Diligence Janathan Allen discusses a crucial element of Mergers & Acquisitions or M & A: comprehensive and thorough due diligence. Due diligence is a process and a review of financial information, tax and corporate documents in order to verify the validity of what the buyer and seller are sharing with one another as it relates to the acquisition of a company or controlling stock interest.
In ABCast Episode 21 - Due Diligence Jan shares the three components of an effective due diligence process. The first is to verify the organizational and corporate governance component of the equation. Is the corporate entity associated with the transaction a well run and professional corporation? The second component focuses upon a comprehensive and thorough financial review. This is one of the most complex and detailed aspects of an effective due diligence. The third component focuses on the tax implications of the transaction for both the buyer and the seller. In addition, one must consider the market and products of the target acquisition as well as primary customers and key employees.
ABCast Episode 21 - Due diligence is a thorough discussion of the checklists which drive a comprehensive review of the transaction from the perspective of the buyer or the seller. Each party has some interests in common (a successful transaction) but there are many aspects of the merger or acquisition where their business and financial interests are somewhat or entirely opposed. How does one verify every aspect of the transaction to ensure protections for the client of Allen Barron and Janathan L. Allen, APC?
We invite you listen to an interesting and thorough discussion of the due diligence process in an M & A transaction.