Most due diligence in M&A transactions revolves around the buyer seeking information from the seller, rightfully so.  It is also important that the seller conduct due diligence on the buyer.  Whether a buyer is a strategic or financial buyer, the seller should verify that the buyer has the financial wherewithal to complete the transaction and that there are no pending legal or governmental actions against the buyer that could jeopardize the transaction.  Especially with regard to strategic buyers, the seller should obtain information to verify the operational strength of the buyer, including the buyer’s customer concentration, vender concentration, product diversification, target market and the buyer’s key performance indicators.  Completion of this limited due diligence on the buyer can confirm to the seller that the transaction will be successful or act as a warning sign that the deal is not meant to be.

If you have any questions about this or any other M&A issue,
please contact Glenn Solomon at gsolomon@offitkurman.com or 443-738-1522.

ABOUT GLENN D. SOLOMON

gsolomon@offitkurman.com | 443-738-1522

Glenn D. Solomon is a principal at Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years. He has extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.

ABOUT OFFIT KURMAN

Offit Kurman is one of the fastest-growing, full-service law firms in the mid-Atlantic region. With over 185 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our twelve offices serve individual and corporate clients along the I95 corridor in the Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York City regions. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.

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