Investment Banking University is the world's only university dedicated to higher learning in investment banking.
Don’t miss anything. Follow Us.
WELCOME
CALL +1 920 264 3054
FOLLOW US
Top

Due Diligence

LOI to accept price and terms.

 

Due diligence is open book time where buyer investigates the business to see if it is how the seller represented it.

 

SMB due diligence:

Standard asset purchase agreement is provided by M&A professional and contingencies for due diligence placed in the contract.

 

A buyer agrees to purchase the company provided the conditions are met. Due diligence items are checked off in writing as they are dealt with and a binding contract is remaining so you are ready to close.

 

Ex. The “book check” is done by the buyer or CPA

 

You can use Dropbox or Google Docs

 

LMM and MM Due Diligence:

Begins with IOI or non-binding LOI. The definitive purchase agreement is not created until after due diligence.

 

Use V-rooms or Firmex

 

Usually takes 60-90 days

 

The definitive purchase agreement is written to address issues discovered in due diligence, otherwise is boilerplate.

Post a Comment

User registration

Reset password