DUE DILIGENCE FOR BUSINESS DECISION MAKING

Most of us have been in a situation where we undertook a transaction with a 3rd party whom we thought we knew well enough, but who ultimately turned out to be a huge disappointment to us. In times like this, the usual reaction is to feel shortchanged and resign yourself to learning the lesson taught by the experience namely, “Always check before you buy” or “Beware the advice of friends”.

When undertaking a transaction with any 3rd party, be it individuals and businesses it is good practice to conduct an investigation into the company to determine the correctness or otherwise of the assumptions underlying the transaction. This has the following benefits

  • By enhancing the parties understanding of the transaction and therefore increasing the likelihood of the deal achieving its objectives.
  • By helping you to identify and understand critical success factors and therefore improve your understanding of all the relevant issues so that informed decisions can be made
  • By highlighting strengths that can be built upon or weaknesses that can be resolved.

When properly conducted, transactional due diligence validates the commercial, legal, operational and financial assumptions that underpin a transaction. One major objective of due diligence is the identification of areas of potential difficulty and providing comfort to the parties to the transaction. It must be noted that Due diligence may not capture the entire picture, so it should not be viewed as a cure all, there will always be hidden issues which may arise after the completion of the due diligence exercise.

Milton and Cross Commercial Solicitors provides individuals and businesses with legal due diligence and transactional advisory services designed to help you undertake risky transactions with peace of mind. Our ability to seamlessly combine legal reasoning with financial analysis and management expertise provides you with an edge overyour competition. Contact us on +2348036258312 or send an email to miltoncrosslexng@gmail.com.

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