Due Diligence
The buyer will look to investigate the key financial, legal and management aspects of your business. Prior to this process Fusion will have worked closely with you to ensure that the buyer does not uncover any potentially awkward anomalies.
Unfortunately there is no standard approach by buyers to the due diligence process. It is a demanding process and it is essential that the management team continues to deliver. With Fusion carefully project managing this element of the process management can keep their eyes on the ball.
This process involves the purchaser's lawyers, accountants and possibly corporate finance advisers and any other specialist consultants. From a legal perspective it is more extensive when shares in a company, or legal entity, are being sold compared to assets.
To ensure the buyer receives information promptly that is accurate Fusion often provides, in advance, a standard DD questionnaire that will cover many of the questions the buyer will ask.
Fusion may also advise the opening of a Dataroom containing the key Due Diligence material a buyer will want to see. The Dataroom can be introduced at the pre-initial or final offer stages and can be a useful tactic to truncate the period from agreement of an LOI to completion.