Due diligence is a crucial stage in the transaction, and it’s the buyer’s chance to effectively audit your company and make sure they know what they’re getting. From a legal perspective, it’s a good chance for your advisors to find out if there’s any risks or any issues with the company that they can protect you from in the final sale agreement. From a seller’s perspective, it can be quite extensive. You’ll receive a long legal due diligence questionnaire, which asks a long list of tailored questions to find out as much information about the company. It will assist later on in the transaction when it comes to the disclosure part of the deal, which is your main protection against warranty claims post-completion.
